UK technology deal flow set for 2010 recovery

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Data from Clearwater Corporate Finance suggests that the UK technology sector is on course to record its highest total deal volume since 2007.

There have been 159 deals so far in 2010, based on technology deals over £3m involving a UK target or acquirer. This compares to 132 in 2009, and 163 in 2008.

Of the 63 deals in the second half of 2010 to date, 38 per cent were private equity related and of these 33 per cent were acquired by a private equity house or a private equity-backed business.

This year, Clearwater advised the UK’s leading provider of telecoms services for small businesses, XLN Telecom, on its secondary buyout by mid-market private equity firm, ECI Partners. Most recently, Clearwater’s technology team handled the sale of Hampshire-based IT services business, Panacea, to K3 Business Technology Group, on behalf of stakeholder, Livingbridge.

Emma Rodgers, senior technology analyst at Clearwater, said: “Large deals have returned to UK technology in H2.”

“Our data reflects a renewed optimism that UK tech is on the ascension and that the sector in Europe is beginning to mirror the US, as major players make big acquisitions to make themselves cloud-ready.”

“Clearwater’s track record in the UK IT sector stands us in good stead for being ahead of the curve as UK and overseas investors embrace cloud computing.”

Read more about Clearwater’s technology team here.

For extra insight into current issues facing today’s markets, visit the team’s M&A Technology Blog.