Troubled Chipzilla’s US rival Qualcomm has until 5pm today to cough up a bid for London-based chip designer Alphawave, though in true farcical fashion this is the sixth time the deadline might be extended. On Wednesday, we’ll find out if analytics outfit Globaldata is next to go. By Friday, it could be healthcare tech group Craneware’s turn.
The trio are among five publicly listed tech companies with a combined worth of more than £5 billion currently being eyed by foreign buyers. If swallowed up, they’ll join the growing number of UK-listed firms disappearing from the market, just as the City limps along with few fresh listings and a very noticeable talent drain.
Only last week, payments giant Wise said it was buggering off to New York, just hours after Cobalt Holdings pulled its planned float. They’re hardly alone. Flutter, CRH and Ashtead have already swapped their primary listings for the glitz and hype of the US.
Charles Stanley’s chief investment commentator Garry White said: “For many, the bright lights of Wall Street will be forever attractive. London should expect more losses such as this.”
Meanwhile, another US predator, Corpay, is circling UK fintech Alpha Group with a move expected in early July. And FD Technologies in Northern Ireland has already bent the knee to a £570 million bid from Boston private equity outfit TA Associates, pending the usual regulatory nods.
Susannah Streeter at Hargreaves Lansdown called the fresh round of takeovers “another blow” to London. “The direction of travel isn't surprising given the investment environment,” she said. “It’s clear the UK is a hub for innovation and entrepreneurship, and it can incubate firms during the early days. But the lack of access to easy capital, and the fragmented nature of government support for scale-ups has made the environment more difficult,” Streeter added.
This week’s looming losses have pushed officials at No 10 and the Treasury to hold crisis talks with City bigwigs, trying to figure out how to breathe some life back into a stock market that’s barely limping along.
It follows the particularly bruising moment in 2023 when Cambridge-based chip firm Arm gave the City the cold shoulder and chose to list in New York instead. That business is now valued at £100 billion, and the UK has very little to show for it apart from some dented pride and another cautionary tale.
