A drop in the valuation of the U.K.'s technology sector presents an enticing opportunity for cash-rich global firms looking to boost their holdings and bring value to investors, market watchers say. Using Hewlett-Packard's $11.7 billion offer for Autonomy as an example, analysts say they expect merger-and-acquisition activity to pick up in the sector and note that firms with robust intellectual property portfolios and those aligned with the cloud-computing sector make particularly good targets.

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