The majority of UK tech companies expect M&A activity to increase over the coming year, with growth sentiment among UK businesses appearing strong following years of muted expectations.
In a new survey, law firm Browne Jacobson polled more than 380 C-suite leaders from £100m+ businesses across a range of tech sectors in the UK and Ireland. 59 per cent of respondents said that they expect M&A deal volumes to increase in the next year, while 39 per cent say they expect a “significant” rise in activity.
Respondents cited renewed market confidence and growth in the sector, with Browne Jacobson noting that the response outstripped “every other sector we surveyed by a factor of two.”
The survey also highlighted renewed confidence in growth among tech business leaders, after several years in which sentiment has appeared relatively low. 51 per cent of leaders believe that the tech industry will see the highest level of inward investment in comparison to other sectors.
86 per cent, meanwhile, expect there to be more interest and investment in the sector from private equity and 89 per cent believe that digital transformation, particularly the integration of AI, will prove to be a major driver of M&A deals and new funding.
The survey, which was conducted in February 2025, also showed that tech leaders were more confident about the UK’s political landscape, with 61 per cent reporting increased confidence in inward investment under the Labour government and 33 per cent saying confidence levels had increased significantly - more than in any other sector.
Browne Jacobson partner and Head of Technology Anthony Nagle said: “Tech corporates are showing strong confidence, with 61% of technology corporates anticipating increased inward M&A activity, it's clear that the appetite for growth and innovation remains strong, despite the complex global backdrop.”
"Looking ahead,” Nagle added, “acquisitions in this space will continue to be driven by demand for AI, IoT and digital infrastructure.”
Despite the renewed optimism among respondents, tech leaders also recognise that there remain significant challenges for dealmakers, arising from factors such as geopolitics, economic uncertainty and a shifting regulatory landscape.
49 per cent think that investors could become more cautious amid economic instability and fluctuations in inflation, potentially leading to fewer deals. 42 per cent, meanwhile, feel that technological disruption and cybersecurity are major regulatory challenges facing inward M&A.
Anthony Nagle commented: “Successful dealmaking increasingly hinges on the ability to anticipate regulatory and trade friction and to structure transactions in ways that build long-term resilience as well as short-term value."
Find out more about how tech is shaping UK M&A:
Automation: Poised to transform UK industries
IT and comms sector buyers confident in M&A, despite dip in activity
The wholesale business has an established trading history and has built up a strong reputation and a loyal customer base. Business is drawn from a wide demographic of clients with a good spread across different business sectors.
This is a unique opportunity to acquire a company specialising in luxury performance cycle clothing, utilising the finest specialist fabrics and cutting-edge construction techniques.
A leading internet-based provider of customisable and curated beauty box services. Over the last decade, the business has evolved from a premier subscription service to a leading internet-based provider of highly attractive and rapidly expanding beau...
WEB-BASED
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.