Acquiring and acqui-hiring AI capability in the UK
AI capabilities are sought after, and 2025 is not the time to start from scratch. Companies are actively seeking to integrate generative AI and other advanced technologies into their operations. In particular, regulated sectors like defence, healthcare and financial services are seeking to build upon existing technical capabilities.
By AnsaradaMon Jun 23 2025Mergers and acquisitions, Innovation, AI and cloud integrations
The UK government observes that M&A in 2024-25 is expected to reflect the need to secure and deploy AI systems at scale.
In September 2024, UK-based technology services provider Acora acquired Elastacloud, a UK founded company focusing on specialist data and AI. Elastacould’s expertise will enable Acora to continue to expand and innovate its end-end IT services with data engineering and AI expertise.
US accounting and professional services firm CLA (CliftonLarsonAllen LLP) acquired UK-based Engine B, expanding its AI capabilities with its first cross-border deal in May 2024. Engine B is a technology company with a focus on generative AI solutions and will enable CLA to provide deeper business and financial insights and opportunities for clients.
Where large companies like Amazon and Microsoft seek to grow internal capabilities, a partnership or minority investment with a startup that has the right expertise may provide a pathway forward. It’s worth noting that regulators are treating these types of partnerships as M&A due to the strategic intent to acquire or influence AI capabilities.
Microsoft’s acquihire deal with Inflection provided access to Inflection’s models and staff to create the new Microsoft AI unit. Inflection’s chatbot Pi had more than 1 million daily active users in March 2024. Regulators treated the deal as a merger, with scrutiny from the UK Competition and Markets Authority (CMA) and European Commission, however, the deal passed through as turnover thresholds for concentration were not reached.
London-based Graphcore, a semiconductor company developing chips designed to accelerate AI tasks, was acquired by Softbank for £462 million. Graphcore’s technology is pivotal for AI model training and deployment. The deal further cements the Japanese tech group’s acceleration into artificial intelligence, providing the hardware for AI innovation. This deal follows Softbank’s significant investment in UK self-driving car startup Wayve, and is Europe’s largest AI deal to date.
With favourable valuations, M&A offers a route to gain investment and realise progress in AI technology for small startups and founder-led companies. Streamlining due diligence processes with AI tools, automated document sorting and risk analysis can help drive opportunities forward and eliminate unsuitable targets, enabling dealmakers to realize results sooner.
