An overview of Cavendish’s recent M&A activities and insights into the technology sector.

In the first half of 2024, we advised on ten technology M&A transactions. Our work included deals with major U.S. strategic technology acquirers such as Motorola, as well as private equity firms like Accel-KKR and GreatHill.

We are pleased to present our mid-year technology transactions update for 2024, providing an overview of Cavendish’s recent M&A activities and insights into the technology sector.
In the first half of 2024, we advised on ten technology M&A transactions. Our work included deals with major U.S. strategic technology acquirers such as Motorola, as well as private equity firms like Accel-KKR and GreatHill.

Increased Cross-Border Activity
The strong presence of U.S. private equity and international strategic buyers in our recent deals highlights a trend of growing cross-border activity. This trend is fuelled by strategic acquirers identifying innovative technology and software platforms and the competitive valuations of UK tech firms compared to their U.S. counterparts.

We’ve recently completed six transactions involving U.S. private equity firms, underscoring this trend. Additionally, over half of our deals involved international strategic buyers or investors, showcasing the global appeal of UK technology companies.

Focus on Cyber Security and Software
The prominence of cyber security and software transactions aligns with global trends. As digital transformation accelerates, there’s heightened demand for robust cyber security solutions and advanced software capabilities.

Our recent activity in H1 2024 reflects this trend, with ten transactions: five in software and three in cyber security. This focus underscores the resilience, high recurring revenues, and solid growth rates seen in software, IT managed services, and cybersecurity sectors.

Resilient Private Equity Market
The private equity markets have remained resilient despite the economic uncertainties caused by rising interest rates from Central Banks in 2022/23. The active participation of both U.S. and UK private equity firms in our transactions shows strong investor confidence in the long-term growth potential of the technology sector.

AI-Driven Investment
Significant investment in both public and private markets is being driven by the global AI trend, which is reshaping the technology landscape for the future. Many software companies are increasingly integrating AI into their technology stacks, while service-driven organisations are creating new revenue streams around AI implementation.

Venture capital investment in the UK has surged as investors seek the next unicorns in a crowded market. With some of the world’s top universities, the UK’s leadership in AI investment, currently in its early stages, is expected to accelerate.