UK tech sector a hive of M&A activity, claims Ernst & Young

The UK tech industry was a hot bed of mergers and acquisitions in the third quarter with activity up five fold on last year, according to an Ernst & Young report. Forty four deals were done during the summer up 76% on the same period in 2009 to continue the momentum that began in Q2, ensuring t

The UK tech industry was a hot bed of mergers and acquisitions in the third quarter with activity up five fold on last year, according to an Ernst & Young report.

Forty four deals were done during the summer up 76% on the same period in 2009 to continue the momentum that began in Q2, ensuring that the UK retained its position as the most acquisitive tech sector in Europe.

"Technology deal-makers in the UK appear to have decided that their strategic M&A needs cannot wait for the global economy to strengthen," said Karl Havers, EMEIA head of technology at Ernst & Young.

Growing demand for connectivity and real-time access to data over mobile devices was "transforming the sector and propelling the globalisation and convergence of technology platforms with other industries, spurring deal activity," he said.

The UK remained behind the US as the most acquisitive tech sector but was in front of Japan, China, France and Germany, with deals rising on the back of e-commerce, cloud computing, wireless telecommunications and mobile security.

Havers said the convergence of technologies meant there would be room in the sector for more deals but he warned "a continued downturn in global economic confidence is one thing that could dampen the short term outlook in the UK and globally."

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