Yorkshire completes largest number of bolt-on deals across the North in 2021

Businesses in Yorkshire and the Humber have completed the largest number of bolt-on deals across the North in 2021, according to Rickitt Mitchell’s Buy and Build Barometer.

Analysis from the corporate finance firm, conducted in partnership with Experian Market iQ, identified 31 transactions in Yorkshire and Humber in 2021, almost equal to the number of deals completed in the North West and North East combined (32).

Also underlining strong performance in Yorkshire is Leeds’ listing as the third busiest acquisition target city in the UK for the first three quarters of the year, with eight deals completed.

According to the Buy and Build data, deals in Yorkshire have increased 72 per cent in 2021 when compared against 2019 figures, and are 24 per cent up versus performance in 2020.

Significant deals completed in the region during Q3 include QCL Holdings’ purchase of a majority stake in Leeds-based Boundless Networks Ltd, a provider of wireless internet services. Completing in July, the purchase adds to the holding company’s portfolio of broadband services companies.

Cross-border deals have also proven popular, including the £75m acquisition of Leeds-based digital firm Smoothwall by Australian firm Family Zone Cyber Safety, in August. Smoothwall provides safety technology including firewalls and filters for education and the public sector.

Analysing the Buy and Build data nationally, transactions in Q3 2021 across the UK matched the same number as last year at 125 completed, but were down 25 per cent on Q2 2021 (166) as the market continues to stabilise after a buoyant period. Overall deal value decreased between Q2 and Q3, from £943m to £235m.

Neil Mitchell, partner at Rickett Mitchell, said: “The number of acquisitions in the North continues to grow as the trend of deals moving outside of London continues. This has been emphasised by strong performance in Yorkshire in the first three quarters of this year.

“Businesses in the region are also attractive to firms outside of the UK, with a number of acquisitions in Q3 2021 being completed across borders, via Europe, North America and Australia. Whilst it is noteworthy that the value of deals has decreased in the last quarter, this was to be expected in aftermath of the pandemic as the market bounced back in the first half of the year..”

Founded in 1976, Rickitt Mitchell is an independent corporate finance firm based in Manchester. Over the last 40 years, the firm has advised on more than £4bn worth of transactions across all deal types, ranging from £10m to over £100m in value.