Market update: Which sectors are doing deals in the pandemic?
It’s been encouraging to see M&A transactions completing in the UK market over the last two weeks, especially against a highly volatile backdrop of stock market fluctuation and widespread business disruption.
Around 40 UK deals completed in the last week, with technology, food, financial services leading the way. Here’s a snapshot of some transactions completing in the current climate.
With millions working from home, demand for IT infrastructure, hardware, and reliable connectivity has soared. In March 2020, Dorset computer repair business CFA Trading sold to US buyer Global Resale, while Xerox acquired two UK IT firms – Bristol-based managed services group ITEC, and Midlands digital transformation consultancy Altodigital.
Software remains one of the most acquisitive sectors in the economy, with two deals closing in the last week. Advanced acquired professional services software division Tikit from BT, and Brighton job board developer Madgex was sold to US acquirer Wiley.
Consolidation is continuing in the UK financial services industry, with the sale of Bristol insurance specialist Kingsbridge sold to acquisitive Pennsylvania group NSM Insurance – providing an exit for private equity investor Dunedin.
Further regional consolidation was also evident with Newcastle Building Society’s financial advisory arm snapping up IFA Carter James Associates.
Other sectors still getting deals done include transport, fire protection, and consumer goods.
- Fish delivery company Colley Brothers sold to Danish transport group
- UK fish processor acquires Dutch counterpart to build pan-European seafood group
- Loss making fire alarm company secures £6m funding via the open market
- Altitude PLC sells off personalised gifts division for £800k
We are keeping a close eye on the M&A market to help owners keep an eye on competitors changing hands, and you can find further updates in the Insights section of our website.