IT & Business Services M&A Activity Remains Robust With Third-Largest Recorded Deal Volume

London, UK – 4 June 2024. The latest IT & Business Services M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that 761 deals were made within the sector in 2H2023.

While falling short of the record-breaking high of 834 attained in the first half of 2023, this is the third-biggest deal volume yet seen in the sector, continuing the trend of transaction numbers within IT & Business Services being markedly higher than in the years prior to the pandemic.

Konstantin Kastius, Managing Director at Hampleton Partners, said: “The still-robust deal figures underscore the continuing demand for enterprise services and solutions that are increasingly vital for remaining competitive and overcoming expertise deficits in an age of pedal-to-the-metal digital acceleration.”

Global IT services spending is expected to reach $1.5 trillion in 2024, an 8.7% year-on-year increase attributable to multiple factors. These include the need by businesses across all industries to invest in cloud migration, and the awareness among senior decision makers of the importance of strengthening their IT infrastructures to defend against increasingly sophisticated cyberattacks.

Developments in machine learning and robotic process automation are also spurring activity in the sector, with CIOs and business owners able to leverage AI tools to optimise and streamline business operations.

That said, the new Hampleton Partners report also notes that change fatigue is exerting a countervailing force on spending, with budget-conscious CIOs “balancing the imperative to implement efficiency-boosting solutions against budgetary caution instilled by the economic headwinds” of recent times.

Accenture has been the biggest acquirer within the IT & Business Services space by a significant margin, with Pye-Barker and Upstack taking the number two and number three positions over the past 30 months:

• Accenture – 64 acquisitions, including SirfinPA (IT consulting services), Customer Management IT (systems management and IT consulting services), and Redkite Data Intelligence (data consulting services)
• Pye-Barker – 28 acquisitions, including Alarmguard Security (security and fire detection systems integrator), Sentry Watch (fire and security systems integrator), and S&S Sprinkler (fire and security systems integrator)
• Upstack – 23 acquisitions, including Progressive Communications Management (IT advisory services), Network One Solutions (telecommunications consulting services), and Sidepath Global (telecom and IT systems integration services)

Download the full Hampleton Partners IT & Business Services M&A Market Report 1H2024, which discusses key industry trends and transaction case studies within the three main subsectors: IT Outsourced Services, Tech Services & Support, and Integration Services at https://www.hampletonpartners.com/reports/it-business-services-report/

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more.

Hampleton Partners advises technology company owners on M&A and growth financing transactions with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders and provide hands-on expertise and unrivalled advice to entrepreneurs looking to sell their companies, partially exit, or to accelerate growth.

With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with sector expertise in: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech, Cybersecurity, Fintech, Healthtech, HR Tech, and Insurtech.

Follow Hampleton on LinkedIn.