October 19, 2015 – (Los Angeles and San Francisco, CA) – Solganick & Co. has issued its latest IT Services M&A Update for Q3 2015. The report covers the latest mergers and acquisitions transactions announced including systems integrators and IT consulting firms, VARs, IT staffing, managed services and cloud services firms.
In general, M&A activity across media, information, marketing, software, and IT services sectors has been hot for the first three quarters of 2015, with 1,758 transactions announced worth $106.2bn.
•Software and IT services has been leading the charge and accounted for more than half of the deal volume and value, amounting to 1,091 transactions worth $58.1bn. Of this, IT services and distribution accounted for 17% while IT outsourcing accounted for 10% of the sector deals.
•Further growth in software and IT services is projected till at least November, 2016 as businesses continue to invest in marketing and technology solutions.
Median Enterprise Value to LTM Revenue (EV/LTM Rev) multiples for IT consulting firms were as follows:
•IT Consulting 1.0x
•Hosting and Cloud Services 2.2x
•Transaction Processing 3.2x
•IT Staffing 0.4x
•Offshore IT Services 2.3x
One notable cloud services M&A transaction announced in Q3 was Accenture’s acquisition of Cloud Sherpas. Also, CSC sold its government IT services division to SRA International. Solganick & Co. advised SAP systems integrator Aptelis, Inc. in its sale to CONTAX, Inc.
You can download the complete report here: Solganick and Co. – IT Services MnA Update for Q3 2015
Solganick & Co., Inc. (formally Generation Equity Advisors) is an independent investment banking and M&A advisory firm focused exclusively on the global Software, IT Services and Digital Media industry sectors. We cover the IT services industry sector comprehensively and advise buyers and sellers of companies on increasing shareholder value through M&A. 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. For more information go to: solganick.com