The number and value of merger and acquisition (M&A) deals in Wales declined in the first quarter of 2026, according to new research from Experian. The MarketIQ M&A review recorded 61 transactions with a combined value of £245m, compared to 66 deals worth £1.1bn in the same period of 2025.
Key deals and funding trends
The largest transaction was the £80m acquisition of London-based telemetry fleet insurer Flock by Admiral. Other notable deals included a £47m fund raise by Wrexham Football Club. The biggest debt deal was £65m secured by Bangor-based housing association Adra from HSBC to support investment and expansion of its housing portfolio.
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 debt deals rose to £78m, signalling increased confidence in the use of leverage to support investment and growth strategies.
Private equity and venture capital activity
Private equity and venture capital activity recorded 22 transactions completed, up from 16 in the previous 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, wholly-owned by the Welsh Government, was the most active investor in M&A deals during the quarter, with equity and debt provision across eight deals. It was followed by LDC (7 deals), and six each for the British Business Bank, Maven Capital, Mercia, Techstart, and the Business Growth Fund (BGF).
Development Bank of Wales performance
While the Development Bank of Wales has generated returns from equity investments through exits, it has also recently incurred significant losses, which are factored into any investment portfolio. Earlier in 2026, it was impacted by the collapse of Swansea medtech venture Calon Cardio-Technology, established by Marc Clement, and Cardiff-based tech venture Amplyfi, both of which had received historical investments from the bank.
HCR Law ranked first for legal advice on deals in Wales with eight, while Azets topped corporate advisory with four.
Government and bank responses
Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, who is conducting a review into the development bank’s financial offer—ranging from debt to equity—to assess if there are 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."
Bank's role and impact
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."
