The Technology Services Perspective – Q2 2022

Richard Latner, Albert Kouzminski, Neha Ramchandani

H1 2022 deal volumes have increased significantly across the board, up 37% over H1 2021. Strategic M&A continues to drive this quarter’s deal activity, namely acquiring footholds in near/offshore hotspots, vendor-specific tech stacks (particularly AWS, Salesforce and SAP) and or next-gen capabilities, such as conversational AI and data analytics.

Public tech companies broadly tracked the NASDAQ’s trajectory, with an expected dip driven by macro factors. However, median EV/EBITDA multiples have remained strong in Q2, with Data Service Providers (13.9x) and IT / Consulting Services (10.8x) continuing to trade at double-digit EBITDA multiples on public markets

In our Global Technology Market Review, we analyse valuations, M&A activity and broader trends in the key technology markets of enterprise software, technology services and cybersecurity. We hope that you enjoy this report and look forward to discussing the data and underlying themes with you. If you are contemplating fundraising, exit or growth through acquisitions, please do get in touch.