South East remains most active region for high-growth M&A outside of London
The South East remains the most active region for M&A activity outside of London and outperformed the majority of the UK in percentage increase in M&A volume when compared to 2023.
High-growth companies in the South East were involved in 125 M&A transactions in H1 2024, making it one of only three UK regions that experienced percentage growth in M&A volume of this kind.
While most UK regions, including London, saw a percentage decline in total volume of deals when compared with H1 2023, the South East experienced a 24% increase in deal volumes, second only to the North East with 29% growth.
These figures point to the South East bucking the overall trend of the UK, with deal volume back to 2021-22 levels. Meanwhile, London has experienced its third consecutive year of falling deal volumes.
While there is optimism among entrepreneurs, corporate investors and private investors, a combination of geopolitical events, political uncertainty and wider economic factors has created a need for stability.
Regional comparison of M&A deal volumes (H1 2024)
The difference between London and the South East may be explained by the pandemic forcing smaller businesses to be flexible, creating less need among start-ups and growth businesses for expensive premises in London. The South East is an ideal place for these businesses to operate due to lower rent and commuting costs, while still having great connectivity to the London market.
Deal spotlight
Getlink’s acquisition of ChannelPorts Limited (2024)
Getlink, the parent company of Eurotunnel, acquired ChannelPorts Limited. Based in Folkestone, ChannelPorts is one of the leading British customs intermediaries with 44 employees and a revenue of approximately £10m in 2023. The company relies on a digital platform – CustomsPro – which simplifies data exchanges and improves the productivity of operations. The services (import, export and transit formalities) will be integrated into Sherpass, the Group’s digital platform that makes border crossings easier for its transport and logistics customers.
Deal spotlight
StarTraq’s acquisition of JML Software Solutions (2024)
JML Software Solutions Ltd (JML) is the sole provider of Chronicle Systems, the leading provider of compliance software into police forces for high-risk assets. StarTraq is backed by private equity firm August Equity. Milton Keynes-based Chronicle is StarTraq’s second acquisition within eight months of initial investment from August Equity, adding further scale and capability to the group, which now provides software into all UK police forces.