E-commerce, cloud computing and social networking business imperatives are driving UK acquisitions in the tech sector.
The number of M&A corporate deals in the UK technology sector grew more than 76% in the third quarter of this year, compared with the same period in 2009, according to Ernst & Young. Some 44 deals were closed July to September this year, up from 25.
Karl Havers, head of technology with Ernst & Young said deal-makers in the UK have decided not to wait for the global economy to strengthen.
"The global shift to an economy based on smart-everything and the blurring of traditional technology sectors, will continue to present new deal opportunities for the foreseeable future," said Havers.
"A continued downturn in global economic confidence is the one thing that could dampen the short-term outlook in the UK and globally," he added.
Private equity-driven M&A activity in the UK this quarter jumped fivefold on the same period last year, 11 private equity deals were closed July to September this year in comparison to just two for the same period in 2009.
However, research from Grant Thornton recently found that UK M&A activity in the tech sector had nearly halved in the third quarter compared with the second quarter of this year.
Top 10 most acquisitive countries in the tech sector
4. China/Hong Kong