Industry Update
News: Technology and Digital Services - Q3 2023
Insight: Technology and Digital Services - Q3 2023
November 4, 2023
Business Services

In Q3, the number of closed deals increased by 7.8% across the sector, reaching 358 deals compared to 332 in Q2 2023. Simultaneously, the median multiple in the sector decreased, returning to a more typical range after the previous quarter's skewed data, influenced by a few higher transactions with above-average multiples.In recent years, the M&A landscape has witnessed an exceptional surge in transactions involving cloud technology solutions providers, with a particular focus on companies specializing in Microsoft Azure and AWS solutions for various applications.During Q3 2023, M&A transactions experienced an uptick in cybersecurity consulting deals, managed security solutions providers (MSSPs), and cybersecurity value-added resellers. Cybersecurity has experienced a downward trend since peaking in 2021, and the recent uptick in deal activity indicates a potential shift in deal volume patterns due to the ever-increasing importance of cybersecurity for companies.

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