Highlights from the report:
- Q1 2026 marked a clear re-acceleration in IT Services and Digital Transformation M&A – while deal volume increased modestly, larger and more strategic transactions drove deal value higher, underscoring buyer prioritization of scale, specialization, and platform capabilities.
- As enterprises shift toward product-centric, data-driven, and AI-powered operating models, M&A demand remains strong for firms that can operationalize AI at scale through proven delivery expertise, proprietary IP, and measurable ROI.
- Consolidation across enterprise application and hyperscaler ecosystems is intensifying as buyers scale platform-specific consultancies with deep partner credentials, embedded AI and automation capabilities, and recurring post-implementation managed services revenue.
- The convergence of MSPs and cybersecurity is fueling M&A activity as the need for security-first, end-to-end technology platforms with cybersecurity embedded across the IT stack continues to grow.
- Despite the strong deal activity at all levels of the market, IT Services public valuations compressed in Q1 2026 as concerns around AI-driven disruption and macro uncertainty weighed on growth expectations.
- The outlook for the rest of 2026 remains positive, supported by demand for digital transformation, legacy modernization, and rapid AI adoption, though M&A activity is expected to remain selective and focused on premium assets.
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for the content, accuracy or completeness of the information presented.
