Tech sector tipped as M&A hotspot

Analyst KPMG cites telecommunications and cloud as key drivers of M&A activity

The technology sector has been tipped as major source of M&A activity this year by market watcher KPMG.

According to the firm's latest Global M&A Predictor, technology sector valuations have outperformed the rest of the market, despite a slump of three per cent this year. Overall, valuations across UK plc are down 14 per cent.

In particular, KPMG has singled out the telecommunications industry as ripe for the picking, with valuations up two per cent.

Jonathan Stankler, technology M&A partner at KPMG, said companies in the mobile data or cloud industry will also prove popular takeover targets.

"A myriad of technological advancements are providing stimuli to the deal market as companies seek to share IP and access technology-hungry environments," he said.