Digital Services Report: Strategic M&A unlocking value and staying ahead of technological disruption

As corporates are pressured to manage costs, increase topline growth and deliver healthy cash flow profiles, the need for strategic M&A and fundraising is stronger than ever before. Those with an internal debate to ‘Buy vs. Build’ are increasingly exploring inorganic growth to unlock value, achieve efficiencies and stay ahead of technological disruption. For more detailed information, keep reading and download our full Digital Services Industry Update below.

Despite uncertain macro-economic conditions, Q2 2024 saw an uptick in deal momentum with overall activity totaling 350+ & $7.4bn+ disclosed M&A deals and 880+ & $8.1bn+ disclosed fundraises, including:

• Cognizant acquired Belcan for $1.3bn
• EQT has entered into a definitive agreement to acquire Perficient for $3.0bn
• Virtusa Corporation acquired ITMAGINATION for an undisclosed amount
• Sikich raised $250m from Bain Capital
• Uniqus Consultech announced a $10m Series B fundraise led by Nexus Ventures
• Raft raised $60m of venture funding from Washington Harbour
  
  

AI innovations and PE ‘dry powder’ set to boost Q3 deal activity

Looking ahead in Q3 2024, we expect generative AI and other AI-powered technologies to fuel further company events, as they adapt to stay at the forefront of innovation. This, in combination with the pent-up demand and abundance of dry powder across the PE ecosystem, will drive M&A and fundraising deal activity in the coming months.

The 12^th edition of our quarterly Digital Services Industry Update provides the latest on industry happenings such as important news and events, M&A activity, and insights into the present and future trends impacting major areas of investment within the industry, including digital transformation, cloud migration, tech-enabled services, security services, business intelligence & data analytics.