Global Digital Services Industry Update | Q2 2022

MUNICH | PARIS | LONDON | August 3^rd, 2022 – Drake Star Global Digital Services Team is pleased to release Global Digital Services Industry Update Q2 2022, which showcases the sector’s steady growth throughout the quarter. According to the report, Q2 2022 saw an uptick in Digital Services transactions with over 375 M&A deals totaling $70bn in value and over 445 fundraises totaling $10bn.

“Artificial intelligence, machine learning & cloud computing continue to disrupt business models and advance transformation agendas throughout the second quarter, leading to increased deal and fundraising volume,” said Gaby Silverstris, Partner at Drake Star specializing in Software/SaaS and Digital Services. “As we head further into the third quarter, we anticipate continued consolidation as operational optimization and digital efficiency become prioritized in this increasingly competitive market.”

Key transactions and funding announcements from Q2 2022 include:

• AMD’s acquisition of Pensando for $1.9bn
• Amdocs acquisition of MYCOM OSI for $188m to expand its network service assurance and monetization offering
• secunet Security’s acquisition of Syseleven for $69m to accelerate its secure cloud infrastructure activities
• Fortress Information Security receiving $125m of growth funding from Goldman Sachs Asset Management
• OSF Digital closing a $100m Series C funding round led by Sunstone Partners
• Growth Capital Partners’ significant minority investment in Container Solutions
  
  

“The Digital Services sector is positioned to surpass 2021 in terms of number of deals and transaction value, with activity already outpacing Q1 2022 by 19% and 90%, respectively,” said Ralf Philipp Hofmann, Managing Partner and Member of the Executive Committee at Drake Star. “While share prices generally dipped between March and June 2022, the tech-enabled subsector recorded the strongest performance, which can be attributed to recent company expansions and exceeded quarterly earnings and revenue results.”

Christophe Morvan, Managing Partner at Drake Star specializing in software/SaaS and digital services, added, “In Q3 we expect to see accelerated demand for artificial intelligence and machine learning-backed technologies focused on data analytics and business intelligence as companies seek to monitor and predict key business metrics in real-time.”

Drake Star Global Digital Services Team:
Ralf Philipp Hofmann, Christophe Morvan, and Gaby Silvestris.

Inquiries
For further inquiries, please contact:

Ralf Philipp Hofmann
Managing Partner & Co-Founder | Drake Star
e-mail: ralf.hofmann@drakestar.com

Christophe Morvan
Managing Partner | Drake Star
e-mail: christophe.morvan@drakestar.com

Gaby Silvestris
Partner | Drake Star
e-mail: gaby.silvestris@drakestar.com