IT Services
Q2 2024 Update
Q2 2024 IT Services Landscape Overview
Insights + Trends
• Cloud and infrastructure services are keeping IT spend on a healthy rebound trajectory overall, but budgets remain somewhat conservative due to lingering macroeconomic uncertainty
• However, AI curiosity and intrigue is prompting many companies to re-evaluate their overall digital transformation efforts, and in some spots, reinvigorate their technology investments and new project activity
• Ongoing skillset shortages are supporting a utilization floor for outside specialist firms, as well as consistent M&A activity – consolidators continue to opt for buy vs. build as they look to increase both the depth and breadth of their solutions for clients
M&A Outlook – Remainder of 2024
Transaction counts are ticking back up and still holding above pre-pandemic levels Seller optimism is growing as businesses recover, though Fed policy and the election are being watched very closely. With the inventory of quality assets in market still relatively low, premium, highly-differentiated targets are driving extremely competitive processes. Winning buyers separating from the pack are motivated financial investors with successful sector track records and a strong bidding angle – or aggressive strategics who can leverage very compelling commercial synergies into a homerun valuation
Source: Gartner
IT Services Public Markets
Historical Index Performance
Share prices have recovered from recent lows in 2023 and, despite some choppiness in 2024, are showing strength on a historical basis and tracking above pre-pandemic levels
M&A Activity – Notable Transactions
UNDISCLOSED APR 2024
MANAGED SERVICES CLOUD SOLUTIONS
UNDISCLOSED APR 2024
UNDISCLOSED MAY 2024
ENTERPRISE SOFTWARE CONSULTING
UNDISCLOSED MAY 2024
DATA & ANALYTICS
UNDISCLOSED APR + JUN 2024
GOVERNMENT SOLUTIONS
The Purple Guys, an MSP backed by private equity firms Kian Capital and ParkSouth Ventures, was acquired by Ntiva, another MSP platform company backed by PSP Capital
nClouds, an AWS Premier Tier Services Partner backed by Charles Thayne Capital, acquired Foghorn Consulting, another AWS Premier Tier Services Partner with a focus on cloud security, migration, and application modernization services
Insight Enterprises (NASDAQ: NSIT) acquired Infocenter, a leading pure-play ServiceNow Elite Partner (and 2024 Elite Partner of the Year) providing strategy, professional, and managed services
Top accounting and advisory firm Wolf & Company acquired Treehouse Technology Group, a leading provider of data strategy consulting, as well as cutting-edge data analytics tool InsightOut
VTG, a national security solutions provider backed by A&M Capital Partners, acquired Vana Solutions (digital transformation innovation for mission-critical national security programs) in April and Clear Cloud (technology solutions and services for U.S. Intelligence Community customers) in June
• BV Investment Partners acquired CyberSheath, a provider of IT and cybersecurity compliance services to defense contractors, from Lightview Capital
• CD&R acquired Presidio, a leading technology solutions provider, from BC Partners
• Global digital consultancy Perficient announced that it will be taken private by EQT
Additional Select IT Services Transactions
HVA IT Services Expertise
About Harbor View Advisors
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