Q3 2026 Infrastructure Services Update: M&A activity remains strong as investors continue to back critical infrastructure services
M&A activity across the Infrastructure Services sector remained strong throughout Q3 2026, with investors continuing to target businesses benefiting from long-term infrastructure investment, resilient end markets and strong earnings visibility.
Deal volumes across the UK and Ireland were 64% above the long-term quarterly average, supported by ongoing demand for specialist technical capabilities across power, water, telecommunications and digital infrastructure. Strategic acquirers and private equity investors remain active, with buyers continuing to favour scalable businesses with strong management teams, recurring revenues and differentiated service offerings.
The sector continues to benefit from several attractive long-term growth drivers, including increased investment in energy and water infrastructure, network resilience, decarbonisation initiatives and the expansion of data centre capacity to support rising AI adoption.
Key themes from Q3
Infrastructure remains a highly attractive investment theme
Infrastructure Services businesses continue to attract significant attention from both strategic and financial buyers seeking exposure to essential, non-discretionary end markets supported by long-term investment programmes.
Scale and specialist capabilities continue to command a premium
Buyers remain focused on businesses with specialist technical expertise, strong customer relationships and proven delivery capability, particularly in highly regulated infrastructure environments.
Strong visibility supports continued valuation strength
Businesses with long-term frameworks, recurring revenues and strong order books continue to achieve attractive valuations, reflecting the defensive characteristics of the sector and confidence in future earnings.
Digital infrastructure investment is creating new opportunities
The continued expansion of data centres and AI-related infrastructure is driving demand for critical power, engineering and specialist infrastructure services providers across the UK and Ireland.
Valuations supported by earnings visibility
Trading multiples across the sector remain robust, supported by strong levels of buyer interest and the attractive characteristics of infrastructure services businesses. Companies with a combination of scale, recurring revenues, specialist technical capabilities and exposure to structural growth markets continue to attract premium valuations.
During the quarter, Arrowpoint Advisory advised H.I.G. European Capital Partners and FourWinds Capital Partners on their investment in Avove, a leading infrastructure and engineering services platform serving the UK water and power sectors. The transaction further illustrates the sector's continued attractiveness, with investors seeking exposure to critical infrastructure markets supported by long-term investment programmes.
