Technology Services 2023 Full-Year Industry Update

Cloud Software Platforms Fueling Growth of Cloud Services Ecosystems in 2024

Ken Allen

Ken Allen

Managing Director, Corporate Finance, KPMG Corporate Finance LLC

+1 857-939-1333


Ken Allen

Ken Allen

Managing Director, Corporate Finance, KPMG Corporate Finance LLC

+1 857-939-1333

Introduction: Technology Services Sector Update

Despite headwinds in overall M&A across all sectors, coupled with macroeconomic  uncertainty, Technology Services M&A market remained robust in 2023, driven by a  number of key sector themes, such as Cloud Enablement, Digital Transformation,  Data / Analytics, and AI. Share prices for publicly-traded Technology Services  companies recovered in 2023 versus experiencing significant declines in 2022.  Valuations similarly increased over the last twelve months from an average EV / LTM  EBITDA multiple of 13.5x at the beginning of the year to 15.4x by the end of 2023.


Major Cloud Platforms Driving Cloud Enablement Services Spend

  • The overall spend on Cloud Platforms is nearly $260 billion
  • The hyperscalers – AWS, Azure, and GCP, comprise the majority of Cloud Platform spend, at 67% of the total market share in 2023
  • Other Cloud Platforms of most interest to Technology Services acquirers include Adobe, Atlassian, Databricks, IBM, Oracle Cloud, Salesforce, SAP, ServiceNow, Snowflake, UiPath,  and Workday





Key 2023 Investment Themes Among Technology Services Acquirers

Capability End-Market Client Size
Digital Transformation ClouBanking / Financial  Services Mid-to-Large Enterprises
Cloud Enablement Healthcare / Life Sciences
Data/Analytics/AI Manufacturing
Managed Services  

Key 2023 Investment Themes Among Technology Services Acquirers


Digital Transformation

Cloud Enablement


Managed Services



Banking / Financial  Services

Healthcare / Life Sciences


Client Size

Mid-to-Large Enterprises



Technology Services M&A Update: 2023

  • M&A volume in the Technology Services sector exceeded last year with an increase of 3.5%  in 2023, driven by a number of key investable themes
  • High-quality assets continue to garner interest from strategic and financial acquirers, due to industry tailwinds and a significant amount of capital sitting on the sidelines
  • Accenture remained the most active acquirer of Technology Services assets in 2023, completing 27 deals. Other significant acquirers included The 20 MSP Group, Bechtle, VAR  Group, and Globant


Key Valuation Trends

  • Valuation multiples (EV / LTM EBITDA) of publicly-traded Technology Services companies expanded in 2023
    • Median multiples expanded in 2023 to 15.4x, up from 13.5x at the beginning of 2023
  • The Technology Services index appreciated 19.6% in 2023, reversing the compressions seen in 2022

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.



Get the latest updates to KPMG Corporate Finance LLC industry insights

Related content


KPMG Corporate Finance LLC’s investment bankers have extensive Technology transaction and industry experience, which enables them to understand the industry-specific issues and challenges facing our clients.


Learn about the latest trends in mergers and acquisitions with KPMG Corporate Finance LLC.