Scotland is ripe for a string of takeovers in its burgeoning digital sector by hungry Silicon Valley firms, according to a tech M&A specialist.
Investment firm GP Bullhound advised on the acquisition last week of Edinburgh business DeltaDNA by San Francisco-based gaming group Unity Technology .
It previously advised on the takeover of data analytics company Aquila Insight by Maryland-based Merkle Group for £40 million in 2017.
The weakness of the pound against the dollar has made UK firms a more attractive prospect for acquisitions.
GP Bullhound founding partner Hugh Campbell said: “The acquisitions of deltaDNA and Aquila Insight by market-leading US players illustrate how highly rated Scottish tech companies are in the international order.
"What we’ve been able to bring to the table is high level advisory combined with bridgeheads into places like Silicon Valley and increasingly Asia. Looking ahead, we see even greater potential for Scotland’s tech ecosystem.
”While it can be hard for UK technology hubs outside London to build profile in international terms, recent investor activity shows that more large corporates and funds are examining Scotland for investment opportunities.”
Edinburgh travel search website Skyscanner was bought by Chinese group ctrip for £1.4 billion in 2016 while last year, fantasy gaming platform Fanduel was snapped up by the then-Paddy Power Betfair in a controversial £500 million deal. Last year, Edinburgh financial services software firm FreeAgent was bought by Royal Bank of Scotland for £53 million and in August, payments system developer Cultivate went to London-based Deliveroo.
Campbell added: “While M&A transactions like Skyscanner and FreeAgent are examples of large and mid-range deals of note in recent times and there is a pipeline of really interesting companies coming through.”
