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impact of the downturn on corporate IT Ford among S&P companies in cash terms, GET THE MESSAGE
budgets hit home in 2009?” asks Andy with IBM, Microsoft, Hewlett-Packard and US-based security software company
Morgan, technology sector leader, Oracle also featuring among the top 20. Symantec’s October 2008 acquisition
corporate finance at PwC. The answer That points to a market where cash-rich of UK-based email filtering company
remains to be seen. US tech leaders may look to buy up smaller MessageLabs is a case in point.
UK competitors in order to fill technology MessageLabs had been forced to shelve
CASH RICH gaps in their portfolios or simply to expand earlier plans for an IPO, while Symantec
In its favour, the IT industry can boast high their geographic footprint. For their needed the company in order to get a
levels of available cash, relative to other targets, acquisition by a larger, richer US foothold in the lucrative software-as-a-
industries. Nearly half of the 20 public company – albeit at a depressed valuation – service (SaaS) arena. “They approached
companies with the most cash to hand in may seem like a good bet. After all, us,” confirms Stephen Chandler, formerly
the US are technology businesses, according opportunities to raise new capital are MessageLabs’ chief financial officer and
to a recent Standard & Poor’s analysis. limited, as available venture capital now working as vice president of the SaaS
Networking company Cisco, for funding has dwindled and the prospects of business unit at Symantec.
example, trailed only Exxon Mobil and an IPO have all but dried up. “It was a difficult time to do a deal –
Key IT sector M&A involving UK companies JUNE 2008 – JANUARY 2009
UK acquirers
Acquirer Activity HQ Target Activity HQ Price
2e 2 IT managed services UK Netstore IT security & managed services UK £58.1m
Access Intelligence IT-based business support svcs UK ArgentVive’s Solcara Information mgmt s/w UK £0.75m
Alterian Intl integrated marketing UK Mediasurface Web content mgmt s/w UK £18.1m
Autonomy Enterprise search s/w UK Interwoven Content management s/w US $775m
Bestoutcome IT project and programme mgmt UK ISA Software developing UK n/a
Brady Commodities trading s/w & svcs UK Commodities Software Raw materials trading s/w & svcs UK n/a
BT Telecoms & IT services UK Ribbit Corporation Open telecoms platform US $105m
BT Telecoms & IT services UK Ufindus Online business directories UK £20m
Cable & Wireless Network services UK Thus Network & customer svcs UK £329m
Capita Outsourcing svcs UK ABS Network Solutions IP comms systems integration UK £13.6m
Claranet Managed services provider UK Crashless Systems/network admin svs provider Portugal n/a
Coexis Securities industry s/w UK GBST Securities transaction admin s/w Austral n/a
Coexis Securities industry s/w UK GBST Securities transaction admin s/w Austral n/a
Easynet Global Services Managed networks/hosting UK Telindus Hong Kong/China Converged telecoms svcs China n/a
Foviance Digital cust experience consulting UK Applied Insights Analytics consulting svcs UK n/a
Innovise ERP svcs & service mgmt s/w UK Infrasolve IT service mgmt s/w UK £6.667m
MessageLabs IT security services UK Fortium ICA Image analysis tech UK n/a
Micro Focus International Appln modernisation s/w UK Liant Software Software development tools US $5.0m
Micro Focus International Appln modernisation s/w UK Relativity Technologies Appln modernisation s/w US $9.7m
NCC Group Escrow, assurance testing svcs UK Next Generation Security Software Ltd Security testing svcs UK £10m
Rackspace Hosting services UK Slicehost/Jungle Disk Online hosting svcs US $28m
Raritan Power/IT infrastructure mgmt tech UK Nassoura Tech’s dcTrack unit Data centre infra mgmt s/w US n/a
RM Group Education sector systems & svcs UK Computrac US education sector tech solns US $8.0m
Serco Group Support services UK SI International IT & network solns for govmt US $423m
Sophos IT security software UK Utimaco Safeware Data security applns & svcs Germany €217m
Stalis Healthcare IT UK Silverlink Software Patient admin systems UK n/a
Stonewood Group Encrpyted disks UK Lipco Engineering Services Precision engineering svcs UK n/a
Telent Technology services UK Alan Campbell Group Communications network solns UK n/a
Xchanging Outsourcing svcs UK Cambridge Solutions BPO & IT services India £83m
Xploite IT services aggregator UK Cantono’s Blue River & mgd svcs units Managed services UK £3m
Mergers & Acquisitions 29
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