Industry Report: Technology Services M&A Market Update [Solganick & Co.]

Key Report Highlights

• AI M&AI-Led M&A Driving Strategic Shift
  Technology services M&A is increasingly centered on AI infrastructure, generative AI, and data capabilities, with deal activity shifting from cost optimization to strategic capability building. AI-related transactions surged 75% YoY in 2025, as buyers race to embed AI across service offerings and client solutions.
• Strong Rebound Expected in 2026 Deal Activity
  Market conditions are improving, with 80%+ of dealmakers expecting increased M&A volume and projections calling for a 15–20% rise in mid-market transactions. Stabilizing interest rates and abundant private equity capital are expected to accelerate platform and add-on activity.
• Cloud, Cybersecurity, and AI Consulting Command Premium Valuations
  Specialized firms aligned with hyperscalers (AWS, Azure, Google Cloud) and those offering AI or cybersecurity capabilities are commanding the highest multiples—AI consulting firms trading up to 12x–16x EBITDA or higher. Buyers are prioritizing deep technical expertise and recurring, high-margin service models.
• Private Equity and Platform Roll-Ups Fuel Consolidation
  Private equity continues to drive consolidation, accounting for a significant share of deal activity—particularly in managed services and IT consulting, where platform strategies acquire smaller firms at lower multiples and scale them into higher-value platforms. MSP deal volume alone rose ~20% in 2025.
• Scale and Specialization Define Winners in 2026
  The market is bifurcating between high-performing, AI-enabled firms and generalist providers. Companies with AI readiness, recurring revenue, and vertical specialization are achieving premium valuations (often 15x+ EBITDA), while firms lacking differentiation face stagnating multiples and increased competitive pressure.

Solganick & Co. is a boutique investment bank specializing in M&A advisory services for software and IT services companies. Founded in 2009, the firm delivers strategic guidance and transaction execution for middle-market clients across high-growth sectors such as cloud services, cybersecurity, data analytics, digital transformation, AI consulting, and enterprise software.

With offices in Los Angeles and Dallas, Solganick leverages a data-driven, industry-focused approach to connect founders, private equity, and strategic acquirers. The firm advises on sell-side and buy-side mandates for companies typically generating $10 million to $200 million in revenue and $2 million to $20 million+ in EBITDA.

Solganick’s senior team brings deep domain expertise and a targeted network of technology buyers and investors. The firm is consistently recognized among the top investment banks in the U.S. for technology services M&A, and conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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