Fall in merger and acquisition deals in Wales

Experian has also identified the Development Bank of Wales has the most active funder in the UK

The number of merger and acquisition deals in Wales and their value have fallen, shows new research from Experian.

Its latest MarketIQ M&A review for the first quarter of the year (Q1) shows there were 61 deals with a combined value of £245m in Wales. This compared to 66 in Q1 of 2025 with a value of £1.1bn. On value the biggest deal was the £80m acquisition by Admiral of London-based telemetry fleet insurer Flock.

Other sizeable deals included a £47m fund raise by Wrexham Football Club. The largest debt deal was £65m secured by Bangor-based housing association Adra from HSBC to support investment and expansion of its housing portfolio.

Firms using cash reserves and existing funds remained the primary sources of funding for deals in Wales – supporting 33 and 27 transactions, respectively. Debt funded activity increased modestly, with ten transactions completed during the quarter, compared with seven a year earlier.

The aggregate value of these deals rose to £78m, signalling increased confidence in the use of leverage to support investment and growth strategies. Private equity and venture capital activity recorded 22 transactions completed, up from 16 last year. This included 19 venture capital investments and three investor or secondary buy-outs.

For the UK as a whole the Development Bank of Wales, which is wholly-owned by the Welsh Government was the most active investors for M&A deals across the UK in the quarter, with equity and debt provision, with eight deals, followed by LDC (7), and six each for the British Business Bank, Maven Capital, Mercia, Techstart and the Business Growth Fund (BGF).

While the development bank has made returns from equity investments from exits it has also recently incurred significant losses – which is factored into any investment portfolio. Earlier this year it was impacted by the collapse of Swansea medtech venture Calon Cardio-Technology, which was established by Marc Clement, and Cardiff-based tech venture Amplyfi. It had made historical investments in both firms.

HCR Law was ranked first for legal advice on deals in Wales with eight. For corporate advisory Azets was top with four.

Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, who is carrying out a review into the development bank’s financial offer, that ranges from debt to equity, to assess if there any funding gaps to support the growth of indigenous firms, said: “An important part of our missions to half the productivity gap with UK is to make Wales the easiest place in the UK to start, grow and invest in a business. Access to investment is vital to achieving that.

“The Development Bank of Wales continues to play a vital role in strengthening investment across our economy. At a time when markets remain selective, it is encouraging to see the bank recognised as one of the most active investors in the UK by deal volume, and continuing to support a wide range of businesses.”

Rhian Elston, group investment director at the Development Bank of Wales, said:“ Being recognised as the most active investor in the UK by deal volume is a significant achievement, but what matters most is what that activity represents for Welsh businesses and the wider economy.

“The Experian report highlights a positive picture for Wales, with increasing levels of venture capital, private equity and debt finance being deployed across the country. That points to a funding ecosystem that is becoming stronger, more diverse and better equipped to support business growth.

“Our role is to provide flexible, patient capital while working alongside banks, private investors, advisers and other partners to increase the overall supply of finance available to Welsh businesses. By combining public purpose with commercial discipline, we can help businesses scale, innovate and retain value in Wales.

“Many of the businesses we support go on to attract further investment as they grow. Avantis Group is a strong example of that journey. We were proud to support the original management buy-out and it is encouraging to see the business continue to attract investment and expand into new markets.

“As a trusted delivery partner, our focus remains on helping businesses start, grow and scale while building a stronger, more productive Welsh economy. That means supporting innovation, creating jobs, encouraging Welsh ownership and ensuring businesses across all parts of Wales can access the finance they need to succeed.”