Miro Parizek, founder and principal partner, Hampleton Partners, said: “M&A activity in the IT Services sector has remained at record high levels this past year.
“For many enterprises, inflation, delivery uncertainty, and geopolitical risk accelerated the transition from IT ownership to IT service sourcing, meaning more spending on managed services and cloud than on on-premise capabilities.
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“In the face of growing cyber risk and often underdeveloped security measures in-house many of the larger players are acquiring cybersecurity service providers to cater to these needs. Also, demand for specialist IT consultancies has flourished, as ecosystems around specific software tools, like Salesforce, continue to develop.”
Hampleton Partners reports that IT & Business Services median valuation multiples remained stable at 1.3 x EV/revenue and 9.4 x EV/EBITDA, with evidence that strategic buyers are choosing to pay higher multiples for desirable assets as they look to reshape their revenue streams, add new products and services and improve online customer experiences.
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Top acquirers – past 30 months
Globally, over 1,700 professional services and system integrators have made at least one acquisition over the last 30-months. More than 300 have made two or more purchases since mid-2020.The three most prolific acquirers and their three most recent deals are:
Accenture – 72 acquisitions: FiftyFiveS, customer insights & advisory services; Blackcomb Consultants, guidewire-centric systems integration; ALBERT.- AI & big data analytics consulting services.
Deloitte – 23 acquisitions: Makros, cybersecurity integration; Reformis, financial IT & business consultancy; Hacktive, managed cybersecurity & consulting.
Converge Technology Solutions – 16 acquisitions: Stone Technologies, ICT systems VAR & IT; Newcomp Analytics, IT consulting and development; Technology Integration Group, IT systems integration & consulting.
Tech Services & Support
The Tech Services & Support segment accounted for over half of all deals in the last 30 months – 57 per cent. Cybersecurity integration and sustainability consulting are helping drive this rise.
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The post Demand for IT & Business Services M&A Grows by 37 per cent as Enterprises Respond to Economic Turmoil, Says Hampleton Partners appeared first on EnterpriseTalk.
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