October 31, 2018 – Solganick & Co. has issued its latest IT Services M&A Update for Q3 2018. The following is a summary of key highlights of the report:
IT Services and Tech-Enabled Services emerged as a dominating sector in megadeals contributing big numbers to the overall M&A activity in 2018. The Transaction Processing sector is trading at an all-time high EV/EBITDA multiple of 18.63x followed closely by Info Services. Managed services extremely active in its ongoing consolidation across the U.S. and globe.
The IT services space continues to be very active:
- Accenture’s acquisition of Pillar Technology, Mindtribe, Kogentix, and Design Affairs
- Atos acquisition of Syntel for $3.4B
- Genpact’s (NYSE:G) acquisition of Barkawi Management Consultants
- H.I.G. Capital’s majority investment in Eze Castle Integration
- NexusTek’s acquisition of Cal Net Technology Group, Syndeo Technologies, and Decision Consultants, Inc.
- Consulting Solutions International acquires Meridian
As for U.S. based M&A:
- U.S. M&A value in Q3 2018 totaled US$ 333.9B, US M&A reached its second-highest total by both deal value and count for the Q1-Q3 period on record with US$ 1.1T and 4,100 transactions tallied
- Average deal size increased 33.9% to US$ 279.1M in the year to date compared to US$ 208.5M in Q1-Q3 2017
- There was a total of 14 megadeals (deal value over US$10B) in Q1-Q3 2018, three more than in Q1-Q3 2017
- US M&A transactions account for 42% of the global M&A by deal count. This is up from 40.9% Q1-Q3 2017
- There was a 19.5% fall in the value of inbound M&A into the US overall from Q1-Q3 2017 (US$ 247.8B) to H1 2018 (US$ 199.4B)
You can download the complete report here: IT Services MnA Update Q3 2018
About Solganick & Co.
Solganick & Co., Inc. is an independent investment banking and M&A advisory firm focused exclusively on the global software and IT services industry sectors. We advise buyers and sellers of companies and efficiently execute M&A transactions that help increase shareholder value. Our professionals have advised on $20+ billion in M&A transactions to date and have current clients and relationships globally with entrepreneurs, companies and leading private equity firms within the sectors we cover.
Please contact us for information regarding this report or to inquire about an M&A transaction.