The UK M&A activity is showing great signs of improvement as the global economy gathers pace. Although KBS Corporate are experiencing an increase in activity across most industry sectors, one of the thriving industries right now is the IT sector.
Employing approximately 1.5 million people and contributing around £75 billion towards the UK’s total gross valued added, the information technology sector is booming and as a result, is attracting high levels of interest from UK companies and overseas companies looking to get a foothold in the UK.
With one of the most competitive technology industries in the world, a highly respected technology skills pool and a particular expertise in the application of technology to deliver business benefit – the UK software industry continues to be on the rise and is presently the second largest market by value in Europe.
Confidence about deal making improves among Corporate’s, which is partly owed to cash rich plc’s who have access to excess of cash and working capital making them attractive target companies.
Thanks can also be owed to Investors, Venture Capitalists, Private Equity Houses and Regional Development Funds who are also turning to the market. The UK has been confirmed as a leading European destination for foreign direct investment. It continues to attract high quality investment from around the globe from established economic partners in Europe, North America and Japan and also from key growing markets such as India and China.
Reports that examine the underlying themes emerging from M&A activity during the course of 2012 predict that activity in the I.T and software sector will continue to outperform the broader market in a number of key areas including investors, venture capitalists, private equity houses and regional development funds who are turning to the market, contributing towards a ‘spike’ in acquisition activity.
Over the forecast periods, year-on-year growth is expected to top 5% every year, making the market worth £11.7bn by 2015. Application software is anticipated to take a small market share from systems software in the future.
Overall, the I.T market is maturing and it is unlikely that there will be a dip in growth in the next five years.
If you are considering the sale of your company and would like to discuss the many options available to you in more detail please call 0844 70 11 880.