The technology services M&A market in 2023 faced challenges amid economic uncertainties, leading to a 21% drop in deal volume from 2022. However, the demand for digital transformation remained strong, particularly in cloud computing, cybersecurity, and AI, driving acquisitions.
Private equity played a significant role, adding competitive pressure and driving up valuations for companies with strong AI and analytics capabilities. Cross-border deals were also prominent, consolidating regional players.
Looking ahead, a rebound is expected as buyers seek assets aligned with emerging technologies. Valuations are anticipated to stabilize for innovative companies in AI, big data analytics, and cloud consulting. Expect renewed M&A activity in 2024, with a focus on scalability and innovation.
For a detailed analysis of the 2023 technology services M&A landscape and insights into the 2024 outlook, download our comprehensive market report.