The latest IT & Business Services M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals there were 709 transactions in the first half of 2025, up from 597 in the previous six-month period. 

Much of this renewed dealmaking momentum stems from developments in AI, with rising investor interest in IT service providers deploying proprietary AI agents to deliver cost-effective services at scale. The race to keep up with rapidly evolving technology is also spurring firms to acquire AI-focused targets to gain intellectual property and enhance their capabilities, leveraging M&A as a more efficient alternative to R&D.

Cybersecurity is another major factor driving activity in the sector, with increasing demand among enterprises for security service providers able to protect their complex hybrid cloud infrastructures from sophisticated, AI-augmented cyber threats.

While M&A is on the rise, both the median EBITDA and revenue multiples for the sector slightly declined in 1H25. Although AI optimisation is energising the market, buyers are nonetheless taking a conservative and pragmatic approach when it comes to valuations, being less inclined to pay premiums for AI capabilities which are increasingly seen as the default. 

Commenting on this trend, Konstantin Kastius – Managing Director at Hampleton Partners – said: “As the IT services landscape becomes more crowded and competitive, we can expect to see companies differentiate and counter valuation compression by developing more vertical-specific productized services. The need to close particular gaps – for example bolstering ecosystem expertise, bringing cybersecurity talent on board or acquiring AI IPs – will also likely add to the market momentum by way of surgical M&A strategies.”

Accenture, Pye-Barker and managed service provider group retain the top three spots as the most prolific IT & Business Services acquirers over the past 30 months.

Accenture – 52 acquisitions, Yumemi (software development services), Halfspace.io (AI development & data consultancy services), and Equisoft (IT consulting & digital transformation services)

Pye-Barker – 29 acquisitions, including Altronics Security Solutions (security and automation systems integrator), AlarmTech (security systems integration services), and Brightspeed Security Systems (security systems integration services)

Managed service provider group, The 20 – 23 acquisitions, including American Distributed Computing Corporation (IT services), Mid-Atlantic Computer Solutions (managed IT services), Eagle's Wings Technologies (managed IT services)

Download the full Hampleton Partners IT & Business Services M&A Market Report 2H2025, which explores key industry trends and transaction case studies within the three main subsectors: IT Outsourced Services, Tech Services & Support, and Integration Services.

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more.

Hampleton Partners advises owners of software and technology companies on M&A transactions and growth financing with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders to date, providing hands-on expertise and targeted advice to entrepreneurs looking to sell, partially retire, or accelerate their growth.

With hubs in London, Frankfurt, Stockholm, San Francisco and Shanghai, Hampleton offers a global perspective with industry expertise in the following areas: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech & Mobility, Cybersecurity, Fintech, Healthtech, Supply Chain Management, Healthtech, HR Tech, and Insurtech. 

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