Los Angeles, CA – Leading technology-focused boutique investment bank Solganick & Co. has issued its latest IT Services and Tech-Enabled Services M&A Update for year-to-date 2018. The report covers the latest mergers and acquisitions (M&A) environment and trends in sectors including IT consulting, systems integrators, managed services providers, information services, IT staffing, VAR’s, and IT outsourcing companies.
To access and download the complete report, go here: Solganick IT Services and Tech Enabled Services MnA Update YTD 2018
The following highlights the report:
U.S. merger and acquisitions activity hit an all-time high during the first half of 2018 by hitting north of $1 trillion in deal value driven primarily by mega deals.
Technology acquisitions and expansion of customer base continue to be the primary strategic drivers for M&A activity.
Private Equity emerges as an influential enabler of large-scale reorganizations this year.
As companies cross industry lines to find new growth and profit pools, there is also an increase in focus on consumer data security.
Trade wars brought on by the U.S. administration. does not hold well for longer-term M&A opportunities. Especially cross-border. We expect this to be the peak of the market especially if trade wars escalate.
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 18.6x followed closely by Info Services, which witnessed a spike at 17.4x during Q2 2018.
The IT services space continues to be very active:
- C Spire acquisition of TekLinks
- Spire Capital investment in Dynamic Quest
- Rizing acquisition of Aasonn
- Mercer acquisition of everBe
- H.I.G. Capital investment in Eze Castle Integration
- Atos acquires Syntel
- Synnex acquires Convergys
- VirtUSA acquires eTouch
Solganick & Co. provides focused investment banking and M&A advisory to fast-growing and established technology companies including extensive experience and coverage within the IT services sector. For more information, go to their website at: solganick.com
To access and download the complete report, go here: Solganick IT Services and Tech Enabled Services MnA Update YTD 2018
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