The amount of UK tech companies being acquired, mainly in US deals, has skyrocketed.

Comparing 2009 to 2017, there has been a 386% rise in UK tech acquisitions to the US.

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According to accountancy firm Buzzacott, 247 firms have left the UK due to US deals. 80 of them, close to a third, were technology companies.

Andy Hodgetts, senior corporate finance manager at Buzzacott, said: “The UK’s technology landscape is changing dramatically and is far more active than it was just under a decade ago. Silicon Valley is no longer the sole proprietor for developing new innovations, the UK is a hotbed for talent, and in the US’ acquisitions of UK companies, they are gaining access to that talent pool.”

Brexit

Also, the number of UK companies below £1bn ($1.2bn) in value snapped up by the US also increased. Between 2009 and 2017, there was an 86% increase in companies, across all sectors, sold to US acquirers.

Hodgetts continued: “There has been a lot of uncertainty around Brexit and what it means for the UK, which has left many businesses unsure as to when might be a good time for them to sell. What we are seeing however is that there are a number of opportunities and buyers out there, especially in the US.

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“For UK companies that are planning on exiting, but have waited due to the uncertainty the UK faces, it is important to not just think about companies within the UK that might want to acquire the business, but explore internationally too as there are plenty of buyers available, whatever the sector.”

He added: “Although there has been a lot of uncertainty around Brexit, it isn’t having a huge impact as some might expect. We have not seen a trend for companies in the UK actively looking to sell because of Brexit, if anything they are holding fire to see what the outcome is.

“Ultimately, in the lower mid-market and mid-market, transactions are driven by value. Entrepreneurs will sell if they can achieve the right value for their business, whilst investment houses need to ensure they are able to provide the right returns for their investors.

“From our experience, the driver of transactions is more approaches from overseas which is being driven by the low exchange rates, meaning the companies are cheaper. We are also seeing that some buyers are looking to get a foothold in the UK as it automatically provides them access to talent and resources in the UK market without needed to start from scratch.”