The number of merger and acquisition (M&A) deals in the UK technology sector fell to 482 last year, the lowest figure since 2002.

The total represents a slip of 21 per cent on the previous year, according to financial advisory firm Icon.

But the number of deals between the UK and international companies rose by 53 per cent. And the market for UK cross border agreements remains steady, despite US buyers being discouraged by the comparative weakness of the dollar.

The global technology M&A market dropped four per cent to a total of just over 4000 deals, said Icon. Much of the fall in activity took place in the second half of 2007, and in particular the final quarter of the year, as equity buyers reacted to the US credit crunch.