Technology Services Q2 2023

Read more about M&A activity and trends in this sector

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 Themes

M&A activity in the Technology Services ecosystem remained robust in Q2’23, with a wide array of key strategic acquirers leading acquisition activity in the sector. Strategic activity has been concentrated around several investment ‘themes’ ranging from Digital Transformation and Cloud Enablement to Cybersecurity and Managed Services.


Technology Services M&A Update

  • M&A volume in the Technology Services sector increased 20% Q-o-Q in Q2’23, 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
  • Aggregate deal value has decreased measurably, due to massive contraction among large,  transformational transactions


M&A Activity is Driven by Several Key Investable ‘Themes’

  • A number of key themes are at the heart of M&A activity in the Technology Services  landscape
  • Key themes include Digital Transformation, Cloud Enablement, Managed Services, Data &  Analytics, Cybersecurity, and Government Services


A Vast Array of Strategic Acquirers are Driving M&A in the Sector

  • The most active strategic acquirers include Accenture, Cognizant, IBM, NTT Data, DXC, Atos, Capgemini, Wipro, CGI, and Globant
  • KPMG is tracking a total of 93 acquirers that are most active in the ecosystem, beginning on page 11


Public Market Valuation Trends

  • Valuation multiples (EV / LTM EBITDA) of publicly-traded Technology Services companies appreciated slightly in the quarter
    • Median multiples increased in Q2’23 to 14.9x, up from 14.4x in Q1’23
  • The Technology Services index appreciated 4.6% in the quarter, reflective of an overall rebound in the equity markets

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.



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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.