Rising Valuations and Deal Numbers Indicate Renewed Confidence in IT & Business Services Market

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 an uptick in both deal activity and the median EBITDA multiple for the sector.

This follows a drop in transaction numbers seen in 1H2024, which was likely due to both macroeconomic headwinds and a normalisation of deal activity following the M&A surge seen during pandemic.

The modest rise in deal volume seen since then, together with a concurrent increase in EBITDA multiples, suggests confidence is returning to the sector, with investors actively targeting companies which can meet the demand for IT outsourcing, network integration and related solutions among organisations pursuing digitalisation initiatives.

The imperative among organisations to leverage the latest AI technologies is also fuelling confidence in the market, with C-suite executives increasingly prioritising investment in tools which can automate data analysis, media monitoring, customer service, and other key internal processes.

Growing activity in less mature territories outside Europe and North America is another factor contributing to overall momentum in IT & Business Services, with the report showing that total deal value in these markets soared to €18 billion in 2H2024, compared to EUR 2 billion in the first half of the year.

Commenting on the latest sector data, Konstantin Kastius – Managing Director at Hampleton Partners – said: “Strategic focus on AI-driven services, sustainability, and agility in response to market dynamics will shape the next phase of growth, as will a growing emphasis on opportunities in emerging markets beyond the US and Europe, where demand for localised IT solutions is on the rise.”

Accenture and Pye-Barker retain the top two spots as the most prolific IT & Business Services acquirers over the past 30 months, with The 20 rising to third position in the rankings:

• Accenture – 56 acquisitions, including IQT Consulting (network integration and IT engineering services), Allitix (Anaplan-partnered IT consulting services), and Joshua Tree Group (supply chain IT consulting services)
• Pye-Barker – 32 acquisitions, including Altronics Security Solutions (security and automation systems integrator), AlarmTech (security systems integration services), and Brightspeed Security Systems (security systems integration services)
• The 20 – 19 acquisitions, including Eagle’s Wings Technologies (managed IT services), Collabrance (managed IT services), and Accurate Computer Solutions (managed IT services)

Download the full Hampleton Partners IT & Business Services M&A Market Report 1H2025, 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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