Industry report: Digital Transformation

The UK’s digital transformation industry is currently valued at over £45 billion, with M&A activity expected to grow significantly over the coming years as businesses accelerate
adoption across key technology domains, including software platforms, data protection, AI and cloud technologies, to remain competitive, unlock new opportunities and deliver lasting value.

In our latest industry report, Corporate Finance Partner Nick Wallis, Director Sam Barr, Associate Director Jack Bettell, and Manager Paul Sotiriou spotlight the strongest market drivers, regulatory shifts, and deal activity shaping this rapidly evolving industry.

Key takeaways from the report include

• Sustained market growth – Europe currently holds 28% of the global digital transformation market, expanding rapidly due to regulatory shifts, stronger data protection standards, and increased government and industry collaboration.
• Rising M&A activity – UK dealmaking is characterised by increasing average deal sizes and heightened competition for scarce, high-quality digital transformation consultancy targets, following a challenging year in 2024.
• Private equity and strategic consolidation – Both PE firms and large strategic acquirers are intensifying roll-up strategies and acquisitions in cloud, AI, and cybersecurity consultancies, sustaining premium valuations.
• Favourable outlook – Easing macroeconomic headwinds and expansion into resilient sectors, such as government and healthcare, position digital transformation consultancies for sustained growth and opportunity.