Sector Reflections / IT Services Winter 2025
Sector Reflections / IT Services Winter 2025
Welcome to the Sector Reflections / IT Services Winter 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 M2M. This edition spotlights the IT Services sector to the end of 2024.
Key Market Dynamics:
Deal Volume: 233 deals tracked in 2024, showing purposeful evolution with focus shifting to strategic value creation rather than pure volume, particularly in cloud transformation and digital services.
Valuation Metrics: Average EBITDA multiple of 10.6x across transactions, with significant premiums for strategic assets and cloud capabilities.
Size Impact: 67% 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 (68.1%), followed by IT Consulting (27.8%) and Value Added Resellers (4.1%), 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.
Recent Success Stories
