The UK SaaS M&A market is experiencing a resurgence in 2025, with deal volumes up 37% year-on-year. Private equity continues to dominate, driving 61% of all SaaS transactions, both as platform investments and bolt-on acquisitions.

The UK’s stable regulatory environment, cultural alignment with US buyers, and favourable currency conditions have made it a hotspot for international dealmakers. This swathe of activity is reflected in a number of significant recent transactions. For example, in June of this year, Zest, a UK-based employee benefits SaaS platform, was acquired by Epassi Group, a pan-European provider backed by Warburg Pincus and TA Associates. Similarly, MirrorWeb was acquired by US-based Mainsail Partners, for £50m, while Wireless Logic was snapped up by General Atlantic in a deal that valued the company at £3.5bn.

Private equity firms are also active domestically. Fargo’s Transport Management System received investment from August Equity, while Re-Flow, a field service management SaaS provider, was backed by Kester Capital. These deals reflect a growing appetite for scalable, recurring revenue models with strong ARR and short paths to profitability.

Historic transactions still continue to inform valuation benchmarks. For example, in 2020 Breathe, a UK HR software developer, was acquired by Elmo Software for £22 million at a 6.1x revenue multiple, while The Core Group, an online HR and payroll SaaS provider, was acquired by Access Group for £175.9 million at a 4.9x multiple.

For UK SaaS founders, the message is clear: buyers are back, but they’re selective. Businesses with strong ARR, defensible IP, and operational efficiency are best positioned to attract premium valuations. With cross-border interest rising and private equity flush with capital, 2025 presents a compelling window for well-prepared exits.

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Myles Hamilton is a Director at Shaw & Co.

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