Takeover frenzy as three british firms targeted by us companies

American investors are seizing the opportunity to acquire three London Stock Exchange-listed businesses for a combined value exceeding £5bn. Declining share prices have left several UK companies susceptible to takeovers. British semiconductor designer Alphawave, quantum computing startup Oxford Ionics and testing equipment specialist Spectris are the latest targets for US firms.

Alphawave has agreed to a $2.4bn (£1.8bn) acquisition by US chipmaker Qualcomm. Shareholders were offered 183p per share, a move recommended by Alphawave’s board following months of discussions. Alphawave, which specialises in high-speed connectivity technology for data centres and AI applications, has struggled since its initial public offering in 2021, where its shares initially traded at 410p. This transaction promises a chance for Alphawave to enhance its product portfolio, extend its customer reach, and develop its technological capabilities further. Qualcomm’s CEO, Cristiano Amon, praised Alphawave’s innovative technologies, which he described as complementary to Qualcomm’s expertise in power-efficient CPU and neural processing units.

Meanwhile, Oxford Ionics, a UK quantum computing firm spun out of the University of Oxford, has agreed to sell itself to the New York-listed IonQ in a $1.1bn deal. IonQ’s market value has skyrocketed to $9.7bn, with its shares quadrupling in value over the past year. Oxford Ionics’ founders, Chris Ballance and Tom Harty, will stay on with the company after the acquisition is complete. This agreement signifies a vital moment for the UK’s promising quantum computing sector.

The takeover spotlight has also landed on Spectris, a London-headquartered precision and testing equipment firm. Spectris has attracted the attention of US private equity company Advent, which proposed £37.35 per share alongside an interim dividend of 28p, valuing the business at £3.7bn. Spectris saw its share prices soar by as much as 69% following this proposal. Advent has until 7 July to formalise its offer or withdraw, as stipulated by UK market rules. Spectris’ board has indicated it would recommend the offer if Advent proceeds with a definitive bid.

This wave of acquisitions underscores a wider trend of British firms being snapped up by international buyers. The appeal of US valuations, known for their tech-centric financial markets, continues to tempt companies to either switch their listings or seek exits. The UK technology sector, in particular, has faced considerable challenges, with fewer large firms able to maintain strong performances. Notable recent examples include the food delivery platform Deliveroo’s £2.9bn takeover by US-based DoorDash, and the $5.3bn acquisition of cybersecurity company Darktrace by private equity firm Thoma Bravo.

Beyond the technology space, several British companies across other sectors have also moved their listings to US markets, citing higher liquidity and better market opportunities. This trend poses questions about the long-term prospects of London as a hub for high-growth, future-focused industries.