Optimism grows in technology field

Technology leaders are more optimistic about the outlook for merger and acquisition activity in the next 12 months, according to a new survey.

By The Newsroom

Published 7th Dec 2010, 12:37 BST

Updated 7th Dec 2010, 12:37 BST

Deloitte's biannual survey of UK technology companies found an increase in optimism from 53 per cent to 60 per cent compared with six months ago.

The survey, which looks at technology mergers and acquisitions and capital market trends for 2010/11 and measures forward looking expectations, shows there is an expectation that there will be a more competitive auction market, with increased private equity activity, particularly focused on companies serving small-and-medium-sized businesses.

Only 26 per cent of respondents thought distress-driven deals were a driver of increased activity, compared to 40 per cent six months ago, suggesting that the time for opportunistically picking up a target cheaply may have already passed.

Rob Seldon, Deloitte's technology partner for the North, based in Leeds, said: "It is encouraging that merger and acquisition optimism has increased."