Software & IT Services M&A

Insights by Peter Watson.

Autumn’s here and my sabbatical is over, but I’m enjoying a comfortable bed (6 months sailing round Britain and Ireland in a small boat was beautiful but cramped!) and excited by the opportunities as highlighted in our M&A review published this month.

Some key points from the latest Prism report “State of Mergers & Acquisitions in the UK Software and IT Services (SITS) Sector”:

• In H1 2025, UK SITS sector deal numbers were slightly down from H2 2024 but still historically strong and growing.
   
• AI investment continues to accelerate and is forecast to grow more than 40% in 2025.
   
• Prism anticipate a strong second half of 2025 and early 2026 to take advantage of lower Business Asset Disposal Relief (CGT set to increase in April 2026).
   

What does this mean to owners of software and IT services businesses? People have compared AI to the internet in its ability to disrupt – many believe it is an even more profound development.

We suspect that companies will need to either invest in this technology or consider  merging or selling their business with larger partners to ensure that their offerings remain relevant to customers.

Invest or Divest – the age-old decision!

To get your free copy of the report, you can reply back to the newsletter email or complete this short form: www.prismcorporatebroking.com/report

Also, for those in the Software and IT Services sectors who are thinking about selling is our live webinar in just two weeks’ time. We will impart our 20+ years of M&A experience help you make your business more attractive to potential acquirers and increase its sale value. See our newsletter emails for a discount code. Find out more here: www.prismcorporatebroking.com/webinar

If you’d like to talk about the report or your M&A options more generally, then please do book a 1-to-1 Chat with me: www.prismcorporatebroking.com/1-to-1-chat