Deal Value

 In November, Iron Mountain expanded its capabilities in IT asset disposition and data lifecycle management by acquiring Wisetek Solutions for nearly $51 million. Wisetek specializes in IT audit services, data destruction, recycling and global remarketing, providing businesses with sustainable IT solutions. This acquisition aligns with Iron Mountain's focus on environmental responsibility and bolsters its position in the global records and disaster recovery services market. 

EPAM Systems strengthened its consulting and digital transformation capabilities by acquiring First Derivative for $301 million at a 1.4x revenue multiple. First Derivative provides IT engineering, cybersecurity, financial crime consulting and system implementation services for the capital markets industry. This acquisition reinforces EPAM’s global footprint and its expertise in high-demand areas such as systems integration and application engineering. 

In October, Xerox Holdings made a strategic move by acquiring ITsavvy for $400 million. ITsavvy, a US-based value-added reseller, specializes in IT hardware, software, managed IT and security services, network integration and professional services. This acquisition aligns with Xerox’s ongoing transformation into a leader in digital imaging systems and IT solutions, enhancing its service portfolio to better address enterprise needs.

In October, cybersecurity leader Sophos acquired SecureWorks for $866 million at a 2.4x revenue multiple. SecureWorks provides managed threat detection, endpoint and network security and consulting services, catering to industries such as finance, education and government. This deal underscores the growing demand for robust cybersecurity solutions. 

In December, World Wide Technology acquired Softchoice Corporation for just over $1 billion at a 1.6x revenue multiple. Softchoice, a provider of IT and cloud services, specializes in software asset management, cloud migration, systems integration and AI consulting. This acquisition strengthens World Wide Technology's position in IT and digital transformation services. 

In September, IBM acquired Oracle-focused IT consulting and systems integration company Accelalpha, enhancing IBM’s Oracle consulting capabilities and accelerating the adoption of Oracle Cloud Applications for its clients. 

In July, Gamma Communications acquired BrightCloud Group for $11.6 million at 1.7x revenue, expanding its service offerings in contact center integration and customer experience solutions as a Cisco partner.

In August, KKR acquired Fujisoft, a systems integration services company based in Japan, for $3.8B. The deal was executed at a 2x revenue multiple, further emphasizing the global expansion of IT services firms. 

Through September 2024, the IT Services sector witnessed two notable megadeals: 

In July, EQT acquired Keywords Studios, a leading provider of outsourced video game testing and quality control services, for $2.6B. The transaction value was based on a 3.2x revenue multiple, marking a significant move in the gaming services space. 

In May, BCS acquired engineering and related IT services company Allegient Defense for $8.5M, creating a larger entity focused on energy and defense programs.