During the first six months of 2025, disclosed M&A deal values in the IT Services sector totaled $5.9 billion, reflecting a more cautious but still active market. The data suggests that buyers remain willing to pay for strategic assets—particularly in areas aligned with long-term technology transformation. 

Despite only 11% 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. 

In the first half of 2025, the IT Services sector recorded 716 M&A transactions. This reflects a 34% increase compared to the first half of 2024, signaling renewed momentum in dealmaking activity. Strategic acquirers remained dominant, accounting for 74% of transactions in the first half of 2025, while Private Equity firms contributed 26%, in line with historical patterns. The rebound in deal volumes suggests a stabilizing environment, with both buyer types continuing to see long-term value in the sector despite lingering macroeconomic uncertainty. 

Venture capital investment in the IT Services sector totaled $9.5 billion across approximately 400 deals. Deal volumes remain subdued after peaking in 2021 and that continued into the first six months of 2025. While deal volume declined, the VC investments in the sector reflects a continued focus on high-conviction investments in areas like AI services, cloud modernization and enterprise automation. The data points to a maturing VC market that favors quality over quantity, backing scalable platforms that support long-term innovation and transformation across the IT Services landscape.