Which UK VAR and MSP acquisitions stood out in a first-half period characterised by muted deal volumes?
2024 saw a series of sizeable UK channel partners, among them CCS Media, Daisy Corporate Services, Total Computers and Sync, sell up to larger rivals, and the likes of Focus Group and Kerv change private equity backers.
Since then, blockbuster MSP/VAR M&A moves have been rarer than successful AI case studies.
That’s backed up by figures from Megabuyte, which show Q1 and Q2 2025 deal volumes in the UK MSP and IT consultancy space dipping to their lowest levels since lockdown.
Higher interest rates and subdued trading continue to hamper activity among PE-backed or debt-backed acquirers, Megabuyte Head of Research & Consulting Neel Arampatta told IT Channel Oxygen.
The first-half of 2025 nevertheless saw Softcat make its first-ever acquisition.
PE- and lender-backed roll-ups such as Redsquid, Flotek and Focus Group (not to mention US MSP backer Evergreen) continued to hoover up multiple peers at the smaller end, meanwhile.
But what deals caught IT Channel Oxygen’s attention in the first half? With assistance from Megabuyte, here we round up 11 stand-out deals, based mainly on size (revenues/headcount) but with half an eye on deal values where disclosed, as well as their overall significance.
11. Armadillo Managed Services
Size: £3.9m revenue
Acquirer: Transputec
When: June
Rationale
Transputec promised a “smooth transition” for Armadillo Managed Services staff and customers when it confirmed it had acquired the cybersecurity specialist last month.
FRP Advisory was appointed as administrators of Armadillo on 4 June, according to a Companies House filing. Transputec confirmed to IT Channel Oxygen that it acquired the business on 5 June.
Despite Armadillo’s small stature – it turned over £3.9m in its year to 28 February 2025 – its impressive client roster included Deutsche Bank, Department for Transport, Credit Suisse, Sony and Paddy Power.
What they said
“Armadillo has spent over two decades building a strong reputation in cybersecurity and infrastructure services. By joining forces, we’re not just combining capabilities; we’re preserving the talent, values, and customer relationships that made Armadillo trusted in the first place,” – Transputec Chairman Rickie Sehgal
Noteworthy nugget
Armadillo’s leadership and delivery team will remain in place to “ensure smooth transition and ongoing support for clients and partners”, Transputec stressed.
Which 10 acquisitions were bigger? See next page…
