Solganick Technology Services M&A Update- Q4 2024 and 2025 Outlook Final
January 23, 2025 – Dallas, TX and Los Angeles, CA – Solganick has published its latest mergers and acquisitions (M&A) update on the Technology Services sector. It covers subsectors, including the following:
- Application Partners and Systems Integrators
- Cybersecurity Services
- Managed Services Providers (MSPs)
- AI and Data Analytics Consulting
- Software Development and Digital Transformation
The following summarizes the report:
- Transaction volume for technology services companies recorded a slight uptick in Q4 2024 at 408 vs. 359 in the prior quarter. Strategic buyers were more active than financial buyers in Q4 2024, with companies including Accenture, CACI, Globant, NTT, Presidio, Software One, Xerox, and World Wide Technology announcing transactions.
- We expect M&A deal volume to increase in the technology services sector in 2025 as technology spending continues to increase in AI, cloud computing, data analytics, and cybersecurity. AI will fuel an increase in IT services M&A for the next several years.
- Artificial Intelligence, data analytics, cloud computing, cybersecurity, and software development competencies are strongest in demand and are expected to remain key areas of interest for buyers during the remainder of the year.
- Demand for specialty IT consulting firms supporting application software platforms continues to be very strong, particularly for partners of applications supporting large and growing market opportunities (e.g., AWS, Google Cloud, Microsoft Azure, Snowflake, Databricks, ServiceNow, Salesforce, and others).
Q4 2024 was filled with large technology services companies acquiring smaller ones to fill demand in AI, cloud, cybersecurity, and managed services.
A few of them include the following:
- Accenture (NYSE: ACN) announced or completed seven acquisitions in Q4 2024 and 39 total acquisitions in 2024.
- CDW (NASDAQ: CDW) acquired AWS cloud solutions provider Mission Cloud Services.
- Comcast Business (NASDAQ: CMCSA) acquired network managed services provider Nitel.
- EY (Ernst and Young) acquired digital identity and access management solutions provider Dignari.
- Evergreen Services Group acquired the following two MSPs: New Hampshire-based PCG IT and West Virginia-based Netranom.
- Bell Canada’s (TSX: BCE) FX Innovation acquired ServiceNow Elite solutions provider HGC Technologies.
- An Affiliate of Canada’s pension fund OMERS acquired a large managed services provider Integris.
- Pomeroy Technologies acquired Soroc Technology.
- Presidio acquired Contender Solutions, Kinney Group, and Internetwork Engineering.
- Recognize (PE firm), through its portfolio company, Blue Mantus, has acquired SME Solutions and Colligio.
- Trace3 acquired Cisco solutions provider Zivaro.
- World Wide Technology acquired Softchoice (TSX: SFTC) for approximately C$ 1.8 billion.
- Xerox (NASDAQ: XRX) acquired IT Savvy for approximately $400 million.
Solganick expects 2025 to show increased deal volume and valuations as large strategic buyers seek AI, data analytics, cloud, and cybersecurity targets.
You can download the complete report here: Solganick Technology Services M&A Update- Q4 2024 and 2025 Outlook Final
For more information or to inquire about an M&A opportunity, please contact us.
Solganick is an AI and data-driven investment bank and M&A advisory firm focused exclusively on software and IT services companies. Founded in 2009, the firm has completed transactions across the globe with strategic and financial buyers and sellers of technology companies.
