UK IT Services & Telecoms M&A Remains Active

The UK IT Services and Telecommunications sector has continued to see strong M&A activity over the past 12 months, driven by ongoing digital transformation, cloud adoption and demand for critical connectivity infrastructure. Businesses operating across managed IT services, software implementation, cybersecurity, telecoms infrastructure and communications services remain firmly on the radar of both strategic acquirers and private equity investors.

Buyers remain highly active, with particular appetite for scalable, recurring revenue models and businesses that can demonstrate strong customer retention, technical expertise and sector specialisation. Consolidation continues across fragmented areas of the market, with many acquirers pursuing buy-and-build strategies to broaden service capabilities, expand geographically and deepen client relationships.

Valuation levels in the sector have remained resilient. High-quality IT services and telecoms businesses are continuing to achieve attractive, high single-digit EBITDA multiples and above, particularly where revenues are contracted, margins are robust and there is exposure to high-growth areas such as cybersecurity, managed services, cloud infrastructure and data connectivity.

Some deal highlights for 2025 were:

• Computer Systems Integration acquired by Park Place Technologies with a 8.72x EBITDA multiple
• Equisoft UK acquired by Accenture with a 9.93x EBITDA multiple
• Gradwell Communications acquired by Onecom Group with a 8.33x EBITDA multiple
• MTM London acquired by Brave Bison with a 7.41x EBITDA multiple
• E18 Consulting acquired by Digital Workforce Services with a 8.92x EBITDA multiple

Over the last 12 months, transaction activity has remained steady across both strategic and private equity-led deals, reflecting the sector’s strong long-term fundamentals. While buyers continue to assess factors such as customer concentration, talent retention and technology evolution carefully, demand for well-positioned businesses has remained strong.

As we move through 2026, many owners in the sector are reviewing their strategic options for the years ahead. For those considering a transaction in the next 12 to 24 months, early preparation remains critical. This often includes strengthening reporting systems, reviewing organisational and shareholder structures, and ensuring recurring revenue visibility and contractual arrangements are clearly evidenced for buyer due diligence.

At La Salle Corporate, we continue to engage with acquirers and investors across the UK IT Services and Telecommunications landscape. We support owners in preparing for sale, enhancing key value drivers and navigating complex transactions to achieve successful outcomes in the lower mid-market.

We previously advised on the sale of IT Support firm Technique to Perfect Image.

We are actively engaged with buyers and investors across the UK Industrials sector.

We support owners in preparing for sale, refining value drivers and navigating transactions to deliver optimal outcomes in the lower mid-market.

If you would like to discuss current buyer appetite, valuation benchmarks or preparation for a future transaction, we would be pleased to share our perspective.

Reach out today to arrange an informal, confidential call.