The biggest M&A moves of 2025 so far

While Q1 marked a notable slowdown in acquisitions, the IT sector is back in buying mode again

After a slow start to 2025, Q2 proved to be almost as acquisition heavy as the same period last year. According to accounting firm Moore Kingston Smith, the UK service provider sector recorded 343 M&A moves in the first half of the year, roughly on par with H1 2024.

But while in 2024 we were hearing primarily about skills and scale, the reasons why MSPs are buying and selling are a bit more varied this year – from AI expertise to geographical expansion, cyber skills and even specific sector entries. Here are the most interesting moves of H1.

Onecom’s LDC-backed buyouts

Targets: Cloud comms providers with hosted voice/UCaaS platforms and regional customer bases

Rationale: Diversify portfolio, expand UK geographic footprint, and reinforce UCaaS leadership

Onecom isn’t slowing down. The LDC-backed comms giant just snapped up Gradwell Communications, bolstering its hosted voice and UC portfolio with Gradwell’s Wave platform, SIP network, Teams/3CX solutions, and connectivity.

The Bath- and Leeds-based firm brings a nationwide customer base and additional UK reach, plus technical muscle in voice and UCaaS. CEO Darren Ridge called the deal “highly complementary” to Onecom’s strategy of expansion and diversification. Gradwell boss Jamie Ward added it will allow customers “even greater value and service.”

This marks Onecom’s 13th acquisition since its £100m LDC/Ares funding package in 2019. Since then, it’s swallowed Olive, Glamorgan Telecom, Russell Telecom, Daly Systems, Excalibur, and more. A further £100m refinancing from Ares in January 2025 keeps the war chest full.

Softcat’s first acquisition

Targets: AI and data consultancies with proven vendor links and client traction.

Rationale: Accelerate entry into data, automation, and AI services to meet customer demand and future-proof growth.

Earlier this year, Softcat finally broke its 30-year no-M&A streak, acquiring Leeds consultancy Oakland for £8m. Oakland specialises in data, automation, and AI, with 70 staff and vendor ties to AWS, Google, and Microsoft. It booked £10m revenue in 2024.

CEO Graham Charlton said Softcat had worked with Oakland for years and admired its data capability. With demand soaring, he called the tie-up a way for “businesses, people, and customers” to benefit. The buyout is being funded from Softcat’s cash, with earnouts over three years.

Charlton emphasised that Oakland is key to Softcat’s ambition to lead in data and AI, helping customers manage, enhance, and govern their data. A staged integration is planned over the coming years.

Econocom continues midmarket spending spree

Targets: UKI AV integrators with strong education, public sector, and corporate client bases.

Rationale: Strengthen AV integration offering and consolidate under the “One Econocom” brand for scale and consistency.

Econocom’s “One Econocom” plan is being written in M&A ink. Its latest buys, a 67 per cent stake in AV integrator Image Supply Systems AV (ISSAV) and the full integration of Smartcomm expand its UKI audiovisual play across education, public sector, and corporate estates.

ISSAV adds over 150 clients across multiple sectors, while Smartcomm brings large-scale AV projects for corporates, universities, and government. Together with existing resources, Econocom now offers end-to-end AV consultancy, design, installation, integration, and support across the region.

Smartcomm, acquired in May, is now rebranded fully under Econocom. ISSAV’s previous owners retain a 33 per cent share but slot into the larger framework. For clients, it’s seamless: the same expertise, now with Econocom’s scale.

Boxxe’s second big splash in two years

Targets: Networking/security specialists with public sector depth and top-tier vendor accreditations.

Rationale: Accelerate toward £1bn revenue, scale capabilities in networking/security, and add sticky public sector clients.

In July, York-based boxxe made another major move, acquiring CAE Technology Services. The deal adds heft in networking and security, thanks to CAE’s Cisco and Microsoft credentials, while broadening public sector exposure across healthcare and education.

CAE’s CEO Justin Harling exits as boxxe chief Phil Doye steps in as group CEO, with CFO Hazel Sagar taking the finance reins at the new subsidiary. Harling called boxxe a “natural home” for CAE, citing Doye’s Kelway pedigree.

The deal covers CAE and its subsidiaries, including Novus Networks, which will continue trading independently before being folded in over the next 12 months. It follows boxxe’s 2024 purchase of Total Computer Networks and supports its march toward £1bn turnover.

Advania’s AI ascent

Targets: HPC/AI infrastructure providers and UK resellers with scale and cross-sell potential.

Rationale: Support AI adoption under sovereignty rules, unify UK operations, and unlock cross-selling across acquired client bases.

Advania is doubling down on AI and integration. In August, it bought HPC and AI platform Gompute from Nordic datacentre operator atNorth. The deal brings Swedish and Spanish teams delivering private cloud, scalable clusters, and HPC for industries like finance, automotive, and CAE.

The acquisition aims to meet client demands for performance and regulatory compliance, with Henrik Foyn-Laukvik of Advania calling it a way to deliver AI “in-region, on-demand and under full client control.” Customers retain Gompute’s service levels, but gain access to Advania’s advisory and implementation services.

Meanwhile, in the UK, Advania has fully integrated CCS Media and Servium into one £452m-turnover business with 1,500+ staff across four countries. CEO Geoff Kneen told CRN the integration has already generated cross-sell success, particularly in AI, Teams Voice, and cloud migration.

Redsquid’s acquisition spree

Targets: Scottish MSPs (RedMosquito, IT Hotdesk, Itek) plus telecoms/security specialists in England.

Rationale: Build UK-wide scale, deepen Scottish presence, and expand service breadth in cloud, security, and telecoms.

Up-and-coming Hertfordshire MSP Redsquid is in full shopping mode, making five acquisitions in 12 months and three in Scotland alone.

Its latest move is RedMosquito, a Glasgow MSP launched in 1999 with 20 staff and expertise in cybersecurity, cloud, and telecoms. The deal gives Redsquid a bigger Scottish footprint (headcount now over 40) and a new office presence.

CEO Sohin Raithatha called the tie-up a “match made in heaven,” stressing RedMosquito’s value will be shared with customers UK-wide. Co-founder Neil Rowney praised Redsquid as “like-minded,” saying its 26-year customer base will gain access to broader services and resources.

The deal follows November’s takeover of IT Hotdesk in Aberdeen, April’s purchase of Fife-based Itek, plus a same-month double in England: Penstone Communications (Surrey) and CST (London). Advice came via Altenburg Advisory, with financing from ThinCats, which partnered with Redsquid last year.