RecTech deals rising in the UK

The UK recruitment sector is currently experiencing significant interest in the field of recruitment  technology, driven by the continuous advancements of AI and digitisation in the business world.


A recent report on mergers and acquisitions (M&A) in the industry reveals that rec-tech deals  made up 42% of the total recruitment deal activity in the first half of 2023. This marks a noticeable  increase in the presence of recruitment platforms in deal negotiations, as well as a surge in  transactions involving technology-enabled software, spanning from background checks and  verifications to psychometric assessments and talent screening. These findings are part of the  latest report from BDO, providing insights into the state of M&A within the UK’s recruitment  industry.


Interestingly, the report highlights a significant upswing in energy-related transactions during this  period, with a focus on traditional energy sources like subsea drilling and oil & gas exploration.


Several key takeaways from the report include:


– The UK recruitment market has demonstrated resilience, with deal levels maintaining their  momentum, showing a slight increase in activity during the first six months of 2023 compared to  the previous two half-year periods. This growth was second only to the second half of 2021.


– Private equity (PE) played a pivotal role in 47% of UK deals during the first half of 2023, a  notable increase from the 40% seen in 2022. This strong PE involvement in recruitment  businesses outpaces the 20-30% average seen in UK deals across all sectors. PE influence  extends to various sub=sectors within the recruitment market, including recruitment technology,  transport & logistics and healthcare. Some notable examples include Taskmaster Resources acquired by IPE Ventures and Security Watchdog by Matrix SCM with backing from Bridgepoint  Development Capital. Additionally, Aliter Capital invested in Concept Resourcing.


– Although there was a 7% decline in overseas investment in the UK recruitment market  compared to 2022, overseas investors – mainly from the US – remain active players in the UK  recruitment landscape.


Despite its resilience, James Fieldhouse, M&A Managing Director for BDO, cautions that the  recruitment market faces potential challenges ahead. The overall performance of the economy  has started to impact recruitment levels, as the high demand previously supported by a high  vacancy rate and low unemployment begins to wane.


Some larger listed recruiters have recently reported drops in overall fees, raising questions about  the potential impact on deal activity in the latter half of 2023. However, historical experience  suggests that this sector will likely remain resilient, continuing to contribute success stories to the  broader deal markets.


Get in touch with us today to find out how we can help with your business’ recruitment strategy.

Meet The Team

It’s our superb team that continue to drive the success of Workforce…

Work @ Workforce

We invest in our people and provide excellent rewards and perks. Experience in recruitment is not necessarily a must-have. The right attitude is what matters most. Find out more…

News & Insights

Catch up with our news and industry insights here…

Hidden Labour Exploitation

We work closely with all our customers, the police and other organisations to ensure we identify and protect people who may be being exploited and/or trafficked.  Find out more…

About Us

Staffing & Recruitment solutions across the UK.

Every year we recruit and provide thousands of first-rate, productive workers to over 700 businesses – from SMEs to PLCs – covering a wide variety of positions from manual handling to C-Suite level.

Find out more

Industrial & Warehouse

For all your Warehouse & Factory roles including: Warehouse Operatives, Pickers & Packers, Assembly Operatives, General Labour, FLT drivers etc…

Driving & Logistics

For all your Driving roles including: Class 1, Class 2, 7.5 tonne, van drivers, delivery drivers etc…

Manufacturing & Engineering

For all your Manufacturing roles including: Welders, Press Brake Operators, Paint Sprayers, Mechanical Assemblers, CNC Operators etc…



For Food Manufacturing roles including: Production Operatives, Food Packers, Filling Operatives, Machine Operators, Quality Supervisors etc…



For Professional roles inc: Accounts & Finance, Call Centre, Customer Service, Legal, HR, Manufacturing, Engineers, Quality, Sales, Supply Chain etc…






Flexible Temporary Staffing

Fill and flex your workforce almost instantly with daily demand…

Onsite Managed Workforce

Combine Flexible Temp Staffing with a dedicated WF account team onsite…

Flat Fee Staffing

Recruit perm staff at a flat-fee per-hire, with staged payments for reduced risk…

iHire - Hiring power

Hiring power to make your recruiting easier, quicker and cost (much!) less…

Permanent Recruitment

Search, Retained and Contingent recruitment for first-class hires at all levels…

Brilliant Recruitment

Can-do workforce solutions. For whatever happens.

Our mission is to deliver real, demonstrable cost savings to employers while ensuring you always have the quantity and quality of staff you need at any one time – from a single individual to hundreds of people. 

Find out more

Case studies

Recent examples of how we help you cut Cost-Per-Hire and Time-To-Hire…

Employer reviews

See what other employers say about working with Workforce…

Working with you

You can expect the highest level of results AND customer service…

Online inductions

Avoid staff downtime by letting us help new starts hit the ground running…

eLearning Courses

Our online training courses that boost your workforce productivity…

Staffing Platform

Total workforce management. Zero aggravation.

Fill and flex your shifts in seconds using our unique “Staffing Platform” recruitment tech and “Shftr” our integrated mobile app for workers.  Managing every aspect of your workforce has never been so easy.

Find out more

Get in touch

Back to News & Insights

More News & Insights