New report found consistent resilience over the past five years for infrastructure services M&A
UK Infrastructure Services M&A has demonstrated consistent resilience over the past five years, with deal volumes remaining strong despite broader market volatility. Activity has been underpinned by a surge in investor appetite for scalable, multi-service platforms, particularly among Diversified Groups, which doubled transaction volumes over the period. This is according to Heligan Group’s latest Five-Year Review: UK Infrastructure Services M&A report.
The UK Infrastructure Services M&A sector has weathered economic turbulence and emerged as a destination for both strategic and financial investors. Heligan’s report reviews activity in the sector over the past five years, highlighting strong domestic and inbound activity, the growing role of technology in value creation, and an increasingly competitive landscape driven by private equity, international buyers and diversified trade platforms.
“Over the five-year period to 31 December 2024, annual deal volumes rose from 183 in 2020 to 266 in 2024, with the market consistently delivering more than 250 transactions per year since 2021,” says Andrew Dickinson, head of infrastructure services at Heligan Group. “The rebound from pandemic-era disruption was rapid, with 2021 alone seeing a 50% increase in activity as infrastructure pipelines reopened and capital flowed back into essential services.
“This level of sustained activity shows just how resilient the UK infrastructure ecosystem has become. Long-term public funding commitments, combined with the essential nature of the services delivered by these businesses, created a dependable platform for both trade buyers and financial sponsors to pursue growth even during periods of economic instability.
Diversified Groups emerged as standout performers across the period, with transaction activity doubling and buyer appetite concentrated on multi-service platforms with the capacity to scale. These groups also tended to command higher-value transactions and attract significant inbound investment.
Dickinson added: “Investors increasingly appreciate the strategic logic behind diversified platforms, particularly value integrated service models that can operate across multiple asset types and regulatory environments. These businesses are positioned to deliver stable, repeatable revenues and are well aligned with the UK’s long-term infrastructure challenges.”.
“The wider policy environment further strengthened investor confidence. The government’s £113bn capital injection in 2024 marked the most ambitious infrastructure commitment in more than a decade and has already begun reshaping expectations for future workloads. Environmental and wastewater reforms, including an overhaul of Ofwat and expanded enforcement powers for the Environment Agency, have intensified demand for compliance, resilience and renewal across ageing networks. At the same time, tightening building safety legislation and the Future Homes Standard are accelerating the adoption of advanced MEP solutions, propelling activity in engineering & contracting and related specialist services. These regulatory commitments have collectively created the conditions for long-term visibility and stability, two essential catalysts for sustained M&A interest.”
Private equity continue to play a significant role within the sector. Financial sponsors were increasingly active in environmental services, MEP-driven engineering & contracting, and specialist testing and certification platforms. Additionally, technology adoption became a defining feature of the sector over the past five years. Businesses leveraging digital twins, drone-enabled surveying, advanced BIM workflows and AI-driven asset optimisation drew heightened buyer interest. As these technologies move from experimentation to operational necessity, the sector is expected to see continued consolidation among digitally enabled platforms.
“Looking ahead, we believe the shift to a Labour government in 2024 and the announcement of a £113bn investment package will be a major turning point for the sector. Whilst this will take time to come into effect, the intensifying focus on decarbonisation, digital transformation and regional regeneration will expand pipelines, improve funding access and strengthen buyer confidence across the industry.”
“ Whilst 2025 got off to a slow start, we expect elevated levels of M&A through to 2030, supported by record AMP8 investment, accelerating energy transition programmes and ongoing digital infrastructure demands,” said Dickinson. “The strategic drivers behind this market are not temporary, they are structural. From renewable energy to data infrastructure to the modernisation of water networks, the UK is entering a decade of transformative investment. That provides exceptional opportunities for well-positioned service providers and the investors backing them.”