During the first nine months of 2025, disclosed M&A deal values in the IT Services sector totaled $11 billion, reflecting a more cautious but still active market as only 10% of transactions disclosed their financial terms. The data suggests that buyers remain willing to pay for strategic assets - particularly in areas aligned with long-term technology transformation. Despite only a limited share of transactions disclosing financial terms, those that did point to a continued focus on quality over quantity. Capital is clearly still being deployed selectively for differentiated capabilities in cybersecurity, cloud, AI and managed services. This disciplined yet resilient deal flow reinforces a measured optimism in the market, as acquirers seek value in foundational technologies that support digital modernization at scale. 

Through September 2025, the IT Services sector recorded 1,084 M&A transactions, a 32% increase compared to the same period in 2024. Strategic acquirers remained dominant, accounting for 74% of transactions, while Private Equity firms contributed the remaining 26%, in line with historical patterns. The strong rebound in deal volumes underscores renewed momentum in dealmaking, with both buyer types maintaining confidence in the long-term value of the sector despite ongoing macroeconomic uncertainty. 

During the first nine months of 2025, venture capital investment in the IT Services sector totaled $12.5 billion across 636 deals. Deal volumes remain subdued compared to the 2021 peak, continuing the downward trend of recent years. While activity levels declined, the amount of capital deployed highlights a continued focus on high-conviction investments in areas such as AI services, cloud modernization and enterprise automation. The data points to a maturing VC market that prioritizes quality over quantity, backing scalable platforms that support long-term innovation and digital transformation across the IT Services landscape.