Overview
- £5.0bn UK software industry revenue forecast for 2026–27
- c.500 software deals a year involving UK targets
- 10.8x average EBITDA multiple on disclosed UK mid-market software deals, H1 2026
- c.37% of UK software deals involved financial buyers
Growing demand for AI-enabled software and sovereign cloud infrastructure, which allows organisations to keep sensitive data within national borders and meet increasingly stringent regulatory requirements, is bringing buyer attention back to software after a softer 2023-24.
Valuations are recovering but remain below historic levels: the average EBITDA multiple reached 10.8x in H1 2026, up from 7.9x in 2025 but still short of the five-year average of 14.2x.
Strong, well-positioned businesses command the best prices. For owners, the time to prepare is now, not at the point of sale.
Read our full sector report
Find out what’s driving UK software M&A in 2026, how valuations are evolving and what business owners can do now to prepare for sale or investment in our UK Software Market report.
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