This document summarizes a report on global M&A trends in the IT services industry in 2016 and 2017 outlook. Some key points: - Global M&A deal activity in the IT services sector increased 9% in 2016, returning to pre-crisis levels. - Drivers include disruption to legacy players, rising cloud services and cybersecurity demands, and industry convergence. - Valuations remain high, with multiples and cash balances rising for listed companies. Strategic and financial buyers remain active in the space.

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Growing equity, realizing value
Vital Research on Global M&A Trends for Owners of IT
Services Businesses.
The Global IT Services M&A Report 2017

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Your presenter
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Ramone Param,
Associate
Director
T: +1 212 2561120 (106)
Ramone.param@equiteq.com
477 Madison Avenue, Suite 740, New York, NY 10022
 10 years’ M&A transaction advisory and corporate development
experience with high profile corporates, infrastructure funds and
private equity.
Previously
 Founding member of PwC’s Global Corporate Development team and
advised PwC’s global leadership team on inorganic growth activities,
including the transformational acquisitions of Booz&Co and PRTM.
 Worked with Macquarie Group's Corporate Finance business in
London.

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Global IT Services M&A Report 2017
• 10th consecutive year
• Compilation and analysis of all 2016 IT services
deals world-wide
• Compiled using:
– Proprietary news feeds
– M&A data subscription services
– Unique intelligence from our daily interaction with
buyers and sellers
– Equiteq commissioned independent research of global
consulting sector buyers
• We analysed firms engaged in IT architecture,
strategy, implementation and maintenance.
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IT Services experiencing
strong growth.
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Bob Hendicott, Consulting Firm.
sold

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Global deal activity up 9%
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2015 deal
volumes
returned to
pre-crisis
levels

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Key drivers for deal activity
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• Disruption to legacy players
• The shift to cloud services
• Rising demand for cyber security
• Convergence with adjacent industries

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Converging buyer demands across industries
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Major deals drove high average deal sizes, but there is
substantial activity in the lower and mid-market
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M&A activity concentrated on North America, but accelerated in
Europe and Singapore
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Equiteq’s IT Consulting Share Price Index rallied to its ten-year
high
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Valuation multiples for M&A are robust.
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Valuation multiples and unused cash balance of listed
companies are rising
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Serial strategic and financial buyers continue to remain active
in the IT services sector.
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Selected top strategic buyers:

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Large accounting networks continue to expand their non-
assurance offerings
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Private equity bid competitively on deals above $10m and can
be a very flexible solution for sellers
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The outlook for owners of IT Services firms
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 Cloud computing and cyber security are critical investment priorities – these will
underpin strong demand for relevant M&A opportunities from buyers across industries
over 2017.
Share price performanceM&A activity

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Is now the time to prepare for a future sale, or sell your
consulting firm?
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More resources
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