Snapshots

The number of Software M&A transactions totalled 163 in Q3-25, down from the 223 completed in Q2-25, with the total disclosed deal value for the period amounting to £4.1bn.

The latest snapshot of the Test, Measurement & Instrumentation (TMI) industry highlights a market that is continuing to perform strongly, with an estimated CAGR of 4.5%, despite broader global issues in the industrials market. Driven by sustained demand for critical industry needs such as safety, efficiency, compliance, quality, IoT integration and the AI boom. Reflecting this strength, Clairfield’s TMI index outperformed the S&P 500 by 35.5%.

Transaction activity within the Specialty Chemicals sector during the first half of 2025 reached a total of 78 deals, marking a 14% decrease compared to the second half of 2024, below the long-term average of 96 deals per half year.

The number of Software M&A transactions in Q1-25 totalled 177, a slight decrease on the 192 completed in Q4-24, with the total disclosed deal value in Q1-25 amounting to £4.1bn.

The second half of 2024 saw high levels of M&A activity in the food & beverage sector driven by improving market conditions and the threat of capital gains tax changes in the 2024 budget.

The HVACR industry has been undergoing a significant phase of consolidation, driven by the push for intelligent climate and energy management solutions to meet energy transition targets.

M&A deal volumes increased in 2024, with 95 deal completions compared to 87 in 2023, representing an 8% increase.

The specialty chemicals sector remained active in the second half of 2024, with 148 transactions, marking a 7% increase from the first half of the year and aligning with the long-term average of 139 deals per half-year.