The UK’s tech M&A market has hit a record high, with £13.2bn deployed across 420 deals last year. Despite macroeconomic challenges, private equity interest, especially in software and SaaS, remains robust. Cybersecurity, vertical SaaS, and fintech SaaS are the hottest sectors, highlighting an investor shift towards essential tech infrastructure. The M&A landscape is evolving, with tougher negotiations and a focus on tech due diligence as the key to long-term value creation.
Key Points
- The UK saw record M&A activity with £13.2bn across 420 deals—a 27% rise year-on-year.
- Private equity remains enthusiastic, with 60% planning to increase software investments despite rising valuation mismatches.
- Cybersecurity and AI are central to deal-making strategies, with specialised due diligence becoming common practice.
- Investor caution towards AI hype is rising, as companies struggle to differentiate genuine functionality from marketing spin.
- London continues to be a key player in the European tech scene, although there are growing concerns about the UK’s competitiveness.
Why should I read this?
If you’re even remotely interested in where the UK tech scene is headed, this article is a must-read! It dives into the factors driving the surge in tech mergers and acquisitions, especially in the realms of cybersecurity and AI. Trust me, you don’t want to miss out on the crucial insights that could affect your business strategies and investments!
