In 2025, disclosed IT Services M&A value reached approximately $11.4 billion, aided by two megadeals, reflecting a selective but healthy market. With only 9% of transactions disclosing financial terms, published deal values capture a limited share of overall M&A activity. 

Even so, disclosed deals show that buyers continue to invest in high-quality, strategic assets, particularly across cybersecurity, cloud, AI, and managed services. The data points to a market focused on disciplined capital deployment and long-term value creation, supporting ongoing digital transformation initiatives. 

In 2025, the IT Services sector recorded 1,351 M&A transactions, representing a new 10-year high and a 20% increase compared to 2024 levels. Strategic acquirers remained the primary driver of activity, accounting for approximately 73% of transactions, while Private Equity buyers contributed the remaining 27%, consistent with historical trends. 

The strong increase in deal volume highlights renewed momentum in IT Services M&A, driven by continued consolidation among strategic buyers and sustained PE participation. Despite ongoing macroeconomic uncertainty, both buyer groups continue to demonstrate confidence in the sector’s long-term value and growth potential, particularly across consulting-led, managed services, and technology-enabled service models.  

VC investors deployed meaningful capital into technology-enabled IT services in 2025 after funding levels dropped sharply in the years following 2021, with total funding reaching approximately $15.5 billion. Although deal volumes remained below the 2021 peak, investment activity reflects a clear emphasis on high-conviction opportunities rather than volume. 

Funding was concentrated in AI-driven services, cloud modernization, and enterprise automation, highlighting a maturing VC market that prioritizes scalable, platform-based service models. Overall, VC activity supports ongoing innovation and long-term digital transformation across the IT Services landscape.