According to IMARC, the global supply chain management software market (logistics) is now valued at $23.2bn and is expected to grow to $54.8bn by 2034.

It is therefore of no surprise that the UK supply chain software market is currently seeing robust levels of M&A activity as strategic buyers seek new solutions to solve ever more complex business problems and private equity firms expand their already flourishing software investment portfolios. For example, The Access Group, one of the largest UK-headquartered business management software providers, recently acquired MaxOptra, a cloud-based route optimisation and delivery management platform. MaxOptra's platform combines AI-driven route planning algorithms with real-time vehicle tracking, electronic proof of delivery, and automated customer communications.

With this in mind, if you are an owner looking to sell your business, it's important to understand where the value lies in today's market and what types of companies are garnering interest from eager buyers with buyer trends focusing on:

1) Platform Consolidation

Platform consolidation is where established software companies acquire complementary solutions to create comprehensive, integrated offerings rather than maintaining separate products. In recent years, this trend has been reshaping the supply chain software landscape as buyers seek to provide clients with unified offerings that address multiple operational needs from a single provider.

In terms of specific software, procurement and sourcing solutions have around 36.6% of market share (2024). These often provide the core functions for the dominant platforms as they enable businesses to manage relationships with multiple vendors for inventory management, oversee demand planning, and simplify supplier onboarding.

In general, buyers are looking for mid-market software companies with specialised capabilities that complement existing platforms. Targets which are able to fully embed themselves into their customers’ operations are the most valuable. This creates a recurring revenue model with a minimal threat of churn as complex integration in turn creates high switching costs.

For example Kerridge (now Klipboard) a global provider of Enterprise Resource Planning (ERP) and business management software, acquired Vigo a TMS and WMS solutions provider to haulage businesses (a transaction that we advised on).

2) Use of AI Technology

With a greater need for visibility and agility, approximately 76% of businesses have adopted digital supply chain solutions. However, just having a software solution is not enough to maintain and grow the customer base. Improvements in technology, and in particular the establishment of AI, means that supply chain software companies cannot afford to stand still. Companies that have successfully incorporated automation, analytics, or AI capabilities are seeing strong buyer and customer interest.

3) Business Dynamics

Buyers place great value on predictable revenue streams, particularly through annual or multi-year contracts that provide long-term revenue visibility. Companies with strong subscription models demonstrate not just current performance, but future cash flow certainty which is crucial for valuations.

Conclusion

The supply chain software market remains active in terms of M&A as companies across all industries continue digitising their operations, creating strong opportunities for mid-market businesses with proven technology, loyal customers, and clear value propositions. For business owners considering a sale, the market favours companies that can clearly demonstrate how they help customers, maintain sustainable revenue models, and show consistent growth potential.

European companies often seek UK businesses for their technology capabilities or market access, while American buyers view the UK as a potential gateway to broader European markets. International buyers typically focus on businesses with scalable platforms that can expand across geographies. However, they increasingly look for companies that have already shown they can grow beyond their home market rather than those that only operate domestically.

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Rob Starr is a Partner - M&A at Shaw & Co.

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