Day of Significant Tech Acquisitions in Britain: Three Billion-Pound Deals Sealed in a Single Day
UK tech takeovers show no sign of abating as US tech behemoths continue their quest for British bargains. On Monday alone, three significant M&A deals worth a combined £6.3bn were announced.
First up was London-listed semiconductor firm Alphawave, revealing it had reached a deal with American chipmaker Qualcomm in a cash and shares agreement valuing the company at $2.4bn (£1.8bn). Later in the morning, quantum computing business Oxford Ionics signed a $1.1bn deal to be taken over by IonQ, its NY-listed counterpart. In the afternoon, Spectris, a precision and testing equipment specialist, saw its shares soar following the unveiling of a £3.7bn takeover offer from US private equity firm Advent. Spectris expressed its intention to accept the proposal.
These deals expose the ongoing undervaluation of UK tech businesses by British investors, as US rivals pounce on cheap acquisition opportunities. All three firms received offers significantly above their domestic valuations. Alphawave's offer of 183p per share represented a near-doubling of its pre-deal share price, while the premium for Spectris exceeded 60%. The billion-dollar offer for Oxford Ionics, a private company, dwarfs the valuation it achieved at its 2023 £30m funding round, unlikely to have surpassed £200m.
The deals come hot on the heels of food app Deliveroo being acquired by US rival Doordash and fintech firm Wise moving its primary listing from London to New York. These moves, which serve as a stark reminder of the difficulty in retaining British startups, may come as a blow to PM Keir Starmer, who sought to celebrate the sector's success during a visit to London Tech Week on Monday. Accompanying billionaire Nvidia chief Jensen Huang, he presented the vibrant tech sector as a key pillar of the UK economy.
According to Danni Hewson, head of financial analysis at AJ Bell, "Today has inflicted a double blow to London markets." US tech companies often find UK firms undervalued, presenting an opportunity to acquire cutting-edge technologies and talent at lower costs. As deeper-pocketed US rivals swoop in, many UK companies still appear inexpensive, suggesting more takeover offers are likely to follow.
- The ongoing tech takeovers in the UK suggest that US tech companies find the British markets appealing, as they see undervalued opportunities to acquire cutting-edge technologies and talent at lower costs.
- As a result of these takeovers, the economy may see a shift, as sectors like semiconductors, quantum computing, and precision equipment could potentially be influenced by technology originating from US tech giants.
