November 19, 2025 – Solganick has published its latest Technology Services mergers and acquisitions (M&A) update report, covering YTD and Q3 2025. It includes M&A trends, valuations, and transactions within sectors including application partners and systems integrators, digital transformation, cybersecurity services and managed security services providers (MSSPs), AI and data analytics consulting, software development, and managed services providers.

You can download the full report here: Solganick Technology Services M&A Update Q3 2025

Here are the highlights to the report:

• Technology Services M&A activity announced in Q3 2025 continued the momentum seen in the first half of the year, with particularly strong appetite for deals in AI, cloud, managed services, and cybersecurity. While deal volumes remained broadly consistent, there was a record-setting uptick in the value and number of large and megadeals, especially in the US market.
• Demand remained hot for cloud migration, digital transformation, and managed services. CapGemini’s $3.3B acquisition of WNS Holdings and Abacus Group’s roll-up activity across MSPs spotlighted expansion in cloud, digital transformation, and cybersecurity consulting. Accenture announced ten acquisitions in Q3 2025.
  Buyers prioritized acquiring firms with scalable, defensible models in areas such as AI-driven tools, data analytics, and risk advisory.
• Cybersecurity consulting and managed services M&A registered consistent growth, hitting 111 deals in Q3, up from last year’s tally. Strategic deals focused on integration of AI-powered security, infrastructure management, and risk consulting—examples include Accenture’s acquisition of CyberCX for $650MM.
• In summary, the Q3 2025 technology services sector showcased resilience and growth, fueled by strategic acquisitions in AI, cloud, cybersecurity, and digital transformation, with robust participation from both strategic and private equity buyers, and a focus on scaling digital capabilities through M&A.

2025 has been marked by large technology services companies acquiring smaller ones to meet demand in AI, cloud, cybersecurity, and managed services.

A few notable M&A transactions announced YTD 2025 include:

• Accenture: Undertook major transactions including the acquisitions of CyberCX (AI-powered cybersecurity, August 2025), Orlade Group (AI project consulting), SI&C, and other specialized firms focused on AI and digital transformation. Accenture has announced 18 total acquisitions YTD 2025.
• Argano acquired six companies in 2025 including Hybridge Solutions (Workforce management and HCM), Netlogistik (digital supply chain), Anavate Partners (Anaplan partner), Twelve Consulting Group (Anaplan partner), and Attentus (Salesforce partner).
• Capgemini: Executed one of the sector’s largest acquisitions by purchasing WNS for $3.3 billion, targeting digital business process and automation capabilities. WNS is a digital BPS firm known for agentic AI-driven operations. They also acquired Cloud4C in August 2025.
• Bain Capital announced the acquisition of HSO, an end-to-end Microsoft suite services provider, in August 2025.
• Carlyle acquired Adastra, specializing in data, AI, and cloud transformation advisory, in July 2025.
• Huron Consulting acquired Treliant (financial services consulting, August 2025) and Wilson Perumal & Co. (strategy and operations consulting, September 2025).
• Presidio acquired TransACT Technology Solutions (cloud and data analytics consulting) and Achieve One (cloud, data center, and digital services, announced Nov. 2025).
• Cognizant’s acquisition of Belcan for $1.3B, an R&D engineering services firm focused on the aerospace, defense, and industrial sectors.
• Stefanini acquired Cyber Smart Defense in September 2025.
• Infosys acquired Versent in August 2025.

Drivers of Valuation Variance for Techology Services Companies in 2025

• The “Implementation Gap” Premium Investors are distinguishing sharply between generic software development and specialized AI implementation. While standard coding shops face commoditization pressures from AI tools, consultancies that bridge the gap between enterprise data and Generative AI execution are seeing a scarcity premium. These firms are currently valued based on the velocity of their pipeline rather than just historical billable hours, as the market anticipates a multi-year shortage of qualified AI solution architects.
• The AI Valuation Effect: Pure-play AI consulting shops are seeing valuations detach from standard hourly bill rate models, often valued on forward growth potential rather than trailing earnings, pushing Revenue multiples above 3.0x in competitive bidding.
• The Arbitrage of Scale (Platform vs. Bolt-on): The spread between “buy” and “build” multiples has widened. Private Equity groups are engaging in aggressive multiple arbitrage: acquiring smaller providers (sub-$3M EBITDA) at modest valuations (e.g., 5x–8x) and immediately integrating them into larger platform entities that command premium valuations (10x–14x). Larger companies, above $20M EBITDA and greater, are seeing mid-to-upper double digit multiples (16x-20x EV/EBITDA). Consequently, a standalone firm’s valuation is often capped unless it crosses the “Platform Threshold”—typically defined in 2025 as exceeding $10M in adjusted EBITDA.
• Metric Convergence: The “Rule of 40” in Technology Services Buyers have adapted the “Rule of 40″—a metric traditionally reserved for SaaS companies—for the professional services sector. In this context, investors are summing Organic Revenue Growth % and EBITDA Margin %. Service firms that can achieve a combined score of 40 or higher (e.g., 20% growth + 20% margin) are successfully breaking the ceiling of standard industry multiples, while those relying on low-margin growth or high-margin stagnation are seeing significantly reduced offers.
• IP-Led Revenue Recognition Valuations are heavily weighted in favor of firms that have productized their service delivery. Consultancies that utilize proprietary accelerators, pre-built code blocks, or internal data assets to deliver outcomes faster are trading at a premium to “pure labor” models. Buyers view these assets as a defensive moat that protects margins against wage inflation and improves client retention.

Note: Running a strong sell-side M&A process also helps drive up valuation multiples due to competitive bidders driving up valuations for companies that are highly strategic to their growth plans.

Technology Services Private Company Valuation Multiples, Q3 2025

Solganick Technology Services M&A Update Q3 2025

About Solganick

Solganick is a data-driven investment bank specializing in M&A advisory exclusively for software and technology services companies.  Since, 2009, the company has completed over 200 M&A transactions to date. 

For more information or to inquire about an M&A transaction, please contact us.