Sector Reflections / IT Services Summer 2025
Sector Reflections / IT Services Summer 2025
Welcome to the Sector Reflections / IT Services Summer 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 H1 2025.
Key Market Dynamics:
Deal Volume: 143 deals tracked in the LTM, including mega-deals alongside sustained mid-market activity, particularly in managed service providers and cloud specialists.
Valuation Metrics: Premium multiples sustained at 12.1x LTM EBITDA across transactions, with cloud-native capabilities and AI expertise commanding significant premiums above market averages.
Size Impact: 68% of deals completed were <£20 million in value, demonstrating vibrant activity across the mid-market, while mega-deals like Wireless Logic (£3.5bn) showcase strategic appetite for scale assets.
Sub-sector Trends: Managed Service Providers lead M&A activity (50%) reflecting strong demand for recurring revenue models and platform consolidation strategies.
Key Players: Strategic consolidators including Flotek, Croft and focus drive UK IT Services M&A, with many private equity backed groups driving continued buy and build strategies.
Some of our IT Services success stories…