Industry Report: Technology Services Q3 2025 [Solganick & Co.]

Key Report Highlights

• Strong M&A Momentum Across Tech Services
  Global technology services M&A surged in early 2025, continuing Q1’s momentum with sustained interest in AI, cloud, cybersecurity, and digital transformation firms. While U.S. deal volume dipped due to tariff-related volatility, overall activity remains strong, with buyers targeting specialist providers that enable next-gen infrastructure and recurring service models. AI and data analytics are leading catalysts, with strategic and sponsor-backed buyers driving consolidation across sectors.
• Cloud, AI, and Cybersecurity Fuel Transaction Demand
  Middle market firms with core offerings in cloud migration, AI enablement, and managed cybersecurity are seeing heightened buyer interest. Demand is accelerating for consultancies and MSPs that help enterprises modernize infrastructure, secure digital operations, and act on real-time data. Companies supporting platforms like AWS, Azure, Salesforce, and Databricks are especially attractive due to the complexity of integration and the growth of enterprise digital ecosystems.
• Recurring Revenue + IP = Premium Valuations
  Firms demonstrating scalable services, IP-driven toolsets, and high recurring revenue are commanding premium multiples—some MSP deals closed at ~20x EBITDA. Private equity is particularly active in backing platforms with predictable revenues and long-term customer contracts. Custom software developers and data consultancies with proprietary frameworks are also being prioritized for their ability to create stickier, solution-oriented client relationships.
• Middle Market is M&A’s Sweet Spot
  The report underscores the $10M–$200M revenue and $2M–$20M+ EBITDA range as the most active deal tier. Buyers favor well-run, vertically specialized providers with domain expertise and regional scale, especially in fragmented markets like IT services, MSPs, and cloud consulting. Acquirers seek firms with deep platform knowledge and operational maturity that can serve as foundational assets for broader roll-ups.
• Digital-First Strategy is a Competitive Imperative
  Technology services providers embracing digital-first operations—from cloud-native architectures and agentic AI to platform-specific certifications—are rising to the top of buyer lists. Offerings such as AI-powered workflow tools, data monetization services, and cybersecurity automation are viewed as differentiators. As tech budgets shift toward integrated, insight-driven services, firms investing in digital innovation are gaining both valuation upside and long-term defensibility.

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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