IT & Business Services Sector Experiences Highest-Ever Number of M&A Transactions, Says Hampleton Partners Report
Intro
London, UK – 17 October 2023. The latest IT & Business Services M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that 712 deals were made within the sector in 1H2023. This is the largest deal volume for any six-month period on record, representing a 2% increase on the previous largest deal volume, seen in 1H2022.
“As global spending on IT continues to grow faster than the global economy, we see a healthy environment for continued high pace of M&A activity in the IT Services sector,” said Hampleton Partners Managing Director Konstantin Kastius. “Additionally, we see a high demand for certain expertise including AI will drive further the healthy pace of deal activity in 2023.”
Muted AI Impact on IT Spending Levels
While generative AI continues to be the subject of an investment feeding frenzy in other tech spaces, Hampleton Partners’ analysts found that the advent of this technology has not yet significantly impacted corporate IT spending levels. It’s expected that most companies will adopt generative AI tools in a gradual manner, through upgrades to software already built into IT budgets.
On the other hand, demand is flourishing for consultancies offering cloud-based solutions, reflecting a desire by IT players to steer away from hardware-heavy acquisitions.
Top IT & Business Services acquirers – past 30 months
Accenture has been the most prolific acquirer within the IT & Business Services space by a significant margin, with Deloitte and Upstack taking the number two and number three positions over the past 30 months:
- Accenture – 68 acquisitions, including ANSER Advisory (program and project consulting services), Nextira (cloud consulting and transformation services), and Bourne Digital (digital design and IT services)
- Deloitte – 21 acquisitions, including Enforce Consulting (cloud application consulting services), Makros SPA (cybersecurity integration services), and Reformis Limited (financial IT and business consultancy services)
- Upstack – 17 acquisitions, including Signal Technology Group (IT advisory services), The Monaco Group (IT advisory services and UCaaS), and LinkSource Technologies (network and cloud-sourcing services)
Download the full Hampleton Partners IT & Business Services M&A Market Report
Download the full Hampleton Partners IT & Business Services M&A Market Report 2H2023, which discusses the megatrends shaping the industry and zooms in on three key subsectors: IT Outsourced Services, Tech Services & Support, and Integration Services: https://www.hampletonpartners.com/reports/it-business-services-report/
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Note to editors:
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.
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About Hampleton Partners
Hampleton Partners advises technology company owners on M&A and growth financing transactions with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders and provide hands-on expertise and unrivalled advice to entrepreneurs looking to sell their companies, partially exit, or to accelerate growth.
With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with sector expertise in: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech, Cybersecurity, Fintech, Healthtech, HR Tech, and Insurtech.