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Value of AIM M&A deals jumps 155% during the pandemic

Publications featured in include: The Independent, City AM, The i, Investment Week, The Daily Telegraph and Accountancy Daily. 

The large rise in the value of AIM M&A deals this year is due in large part to a number of high value deals for tech businesses. The total value of tech M&A deals on AIM this year rose to £2.6bn, accounting for 32% of the total value of all M&A deals on AIM. Acquisitions of tech businesses accounted for just 7% of deals (£232m) on AIM the previous year.

The sharp increase in the value of technology M&A deals shows that the AIM market is acting as a successful growth platform for tech companies. Many of AIM’s tech companies have become attractive targets for acquisition over the past two years.

The highest value M&A deals for AIM-listed tech companies in the last year include:

  • Video game developers Sumo Group (who created the game series Little Big Planet and Sonic Racing) acquired by Chinese technology conglomerate Tencent
  • American cyber security multinational Cisco Systems purchased IMImobile, who provide businesses with automated enquiry responses and chat-bots, for £540m

Many companies listed on AIM have become attractive targets for private equity bidders. Major private equity deals for AIM in the past year included Ancala Partners’ £341m purchase of waste services business Augean, DBay Advisors’ 75% £240m purchase of Telit Communications, which provides Internet of Things software, and Flexpoint Ford’s £233m purchase of wealth manager AFH Financial. 

Dan Hutson, Partner in our London office says: “The past year has seen an M&A boom in the UK and AIM has played a big part in it.”

“Being AIM listed is an excellent platform for growth companies, helping them to raise capital and to move to the next stage of their growth through M&A.”

“Over the last year AIM has served tech companies particularly well, putting their success in the shop window. Both private equity and major tech multinationals are watching AIM to identify acquisition targets.”

*Year end September 30th 
 

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