Now more UK tech stars are takeover prey for foreigners
FOREIGN investors are thought to be eyeing more of Britain’s tech pioneers after the sale of ARM Holdings to the Japanese.
Industry experts have highlighted a string of tech firms which could be next in line, after being encouraged by the ease with which SoftBank has been able to snap up ARM.
Yesterday 95pc of investors in ARM approved the takeover.
Now those thought to be on the radar of predatory firms include IQE, Telit, Accesso, Imagination Technologies and Micro Focus.
Hargreaves Lansdown analyst Laith Khalaf said: ‘The environment is conducive to deals at the moment, with interest rates being so low and economic growth quite thin on the ground.
‘If you were a shareholder in ARM, I’d imagine you would have been dancing in the street when the deal was announced.’
IQE, founded in Cardiff, makes the silicon wafers used as a base for microchips while Berkshire-based Accesso provides ticketing software for ski resorts, zoos and theme parks. Its clients include Alton Towers operator Merlin Entertainments.
Telit is a leader in the so-called internet of things – next-generation technology which will allow machines to wirelessly communicate with each other.
And Micro Focus develops security and networking programs. In 2012, it won a payout from a police force in Australia following allegations it had distributed 9,500 more copies of the firm’s software than legally allowed.
Graphics processor maker Imagination Technologies is a key supplier for the iPhone. It has also been a takeover target for the mobile’s maker Apple, but talks came to nothing.
British innovation has become more attractive to global firms due to the changing nature of the technology industry, said Peel Hunt analyst Paraag Amin.
As the world’s leading tech companies grow, they search for takeover targets to keep up with their competitors, he said, adding: ‘In the past acquisitions have always happened but they are likely to grow in pace.’
But, he said, with fewer UK-owned listed tech firms, major investors would run out of opportunities in the sector.