A look at the latest trends shaping M&A activity across the UK IT services sector.
Following a strong finish to 2025 and a resilient first quarter, UK IT services M&A activity slowed in Q2 2026. However, the fall in deal volumes does not point to a closed market, with buyers instead becoming increasingly selective about the businesses and capabilities they are targeting.
The first half of the year saw continued appetite from private equity and PE-backed strategic acquirers, with platform-led consolidation remaining a feature of the market. While traditional strategic buyer activity fell during Q2, PE-backed strategic acquirers completed 16 deals in both Q1 and Q2.
Buyer interest continues to centre on businesses offering recurring revenue, specialist capabilities and exposure to growth areas including cybersecurity, cloud, data and AI. Managed service providers remained the largest classified subsector in H1 2026, accounting for 20% of transactions, while Software & SaaS and Data, AI & Analytics both increased their share of activity.
Our UK IT Services M&A Insights report looks in more detail at transaction volumes, buyer activity and subsector trends during H1 2026, alongside a selection of notable transactions and what current market conditions could mean for business owners considering a sale.
Download the full report here.
