Shaw & Co, the specialist corporate finance advisory firm, has launched a free interim analysis of the Technology, Media & Telecoms (TMT) industry.

The report, which features a summary of M&A deals that have been completed since the launch of Shaw & Co’s annual TMT report last October, provides SMEs with valuable insight regarding their latest acquisition prospects.

The report’s key findings include:

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48% of buyers from outside UK:

Nearly half of acquirers were international businesses. This is a higher proportion than in other sectors, demonstrating the health and attractiveness of the UK’s TMT sector.

64% of deals coming in the South East of England:

The vast majority of deals completed centered around the South East of England. This is unsurprising given the fast-paced growth of companies within Reading and the Thames Valley.

124 M&A deals and 5.2 revenue multiple:

The average multiple for deals in this period was 5.2x revenue. This is higher than other sectors and reflects the scalable nature of many TMT companies. Aside from the acquisition of British robotics software company Blue Prism Group by Bolt Bidco for £1.2bn, the average deal size in this period was £79m, with prices ranging from £653m to £10m. 86% of the deals completed in this industry were within the Information Technology and Software sub-sector.

Myles Hamilton, Director – M&A, Shaw & Co, said: “There has been a high level of M&A activity within the TMT industry. Following a strong emergence from the pandemic, long-term commercial rationale for deals is continuing as acquirors look to scale up technological operations. It is little surprise that our increasingly digital world has made this sector highly attractive to all types of investors.”

A full copy of the report is available for free download here.