Sector Reflections / IT Services Spring 2025

Sector Reflections / IT Services Spring 2025

Welcome to the Sector Reflections / IT Services Spring 2025

In the dynamic world of M&A, staying ahead creates opportunities. We conduct comprehensive industry-focused reflection reports across various sectors, examining the latest significant M&A transactions, powered by our data partnership with MarktoMarket. This edition spotlights the IT Services sector through to Q1 2025.

Key Market Dynamics:

  • Deal Volume: 110 deals tracked in the last 12 months, showing a focus on cloud transformation and AI capabilities, particularly in managed service providers.

  • Valuation Metrics: Average EBITDA multiple of 10.8x across transactions, with significant premiums for strategic assets and cloud capabilities.

  • Size Impact: 69% of deals completed were <£20 million in value, demonstrating an active M&A landscape at the smaller end of the market.

  • Sub-sector Trends: Managed Service Providers lead M&A activity (53%) reflecting strong demand for recurring revenue models.

  • Key Players: Strategic consolidators drive UK IT Services M&A, while PE-backed platforms continue aggressive build-out strategies.


Some of our IT Services success stories…

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Sector Reflections / IT Services Summer 2025

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Seasonal M&A Review / Spring 2025