The IT Services Global M&A Report 2018 - equiteq.com · announced partnerships with Automation Anywhere, ... Oracle EPM and OBIEE consulting services Buyer: KPMG Deal value: Undisclosed

© Equiteq Advisors Ltd. 2018Growing equity, realizing value

Market trends and key transactional insights for owners of IT services firms.

Management Consulting

IT Services

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Engineering Consulting

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The IT Services Global M&A Report 2018

Nigel Povah, Behavioural assessment & development consulting.

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© Equiteq Advisors Ltd. 2018 3Contents

Foreword 4

IT Services 7

Key findings 7

Overview of M&A activity 8

Regional review 11

Overview of equity market performance 12

Valuation multiples and trends 13

Strategic and private equity buyer trends 15

Selected transactions 16

Tips 19

Appendix 22

Key definitions 22

A quick word on the data 23

About Equiteq 23

Further resources 24

Disclaimer 25

Contents

The IT Services Global M&A Report 20184 Foreword

Foreword

Welcome to our annual review of M&A and equity market trends within the IT services industry.

This report looks at the latest developments impacting M&A across the global IT services industry in 2017. We also provide a comprehensive analysis of the Equiteq IT Services Share Price Index, the only published stock price index for the industry.

M&A activity fell after a strong year of deal flow in 2016. Despite these overall falls, we observed continued demand for cloud consulting capabilities, and rising demand for cyber security, advanced data analytics and robotic process automation advisory businesses.

In many of these hot spaces, skilled talent is short - which is driving strategic M&A and premium valuations. Robust pricing and competition for assets is also being supported by rising quoted valuations of listed technology players. This is combined with these cash-rich buyers’ demands for new avenues of growth in transforming spaces of the industry.

The impact of new digital technologies on all sectors of the global economy is driving interest in innovative IT services capabilities from a range of buyers. This includes traditional and non-traditional strategic acquirers, as well as private equity investors that see the potential for stellar returns in the space.

As the industry transforms with new innovations, there is a unique opportunity for pioneering business owners and entrepreneurs to create value and make profitable exits within the disruption zone of the market. We hope that this latest edition of The IT Services Global M&A Report gives you a taste of Equiteq’s unparalleled insights into deal activity within the industry.

If you would like to have a chat about your current sale journey as a business owner or acquisition strategy as an acquirer, please get in touch.

David Jorgenson, CEO Equiteq

© Equiteq Advisors Ltd. 2018

Antonio Bonet, International development consulting.

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6 IT Services The IT Services Global M&A Report 2018

Helen Sandom, Brand agency.

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7IT Services

IT Services


M&A activity

Share price performance

Profiled active buyers:

Accenture CGI Group Capgemini KPMG Atos

Median deal value

Average deal size

Cross-border transactions

Serial buyers

Financial buyers

Annual decrease in deal volumes

Annual increase in share-price index

$14m

$82m

21%

34%

6%

9%

22%

Key findings

Deal volumes Revenue multipleEBITDA multiple

2008 20132009 20142010 20152011 20162012 2017

0.9x

9.1x

9.5x

0.9x

635

deal

s

Share price index Revenue multipleEBITDA multiple

2008 20132009 20142010 20152011 20162012 2017

8.4x

12.0x

0.8x

1.2x

Jan 2008: 100

Dec 2017: 208


Overview of M&A activity

Demand for cloud services capabilities remains strong

Deal flow in cloud services remains robust, but growth in M&A within the space is maturing. In 2017, the proportion of IT services acquisitions involving target businesses with cloud services capabilities was broadly in line with 2016.

Accenture acquired two consulting partners of ServiceNow, which continues to expand from ITSM into new areas like HCM and customer service management. The deals were part of a strategic growth plan to strengthen Accenture’s position as a leading provider of ServiceNow services and cloud implementations globally after completing relevant deals in 2015 and 2016.

An interesting deal that exemplified the convergence of customer-focused cloud computing with marketing, was the acquisition of Pierry by WPP-owned Wunderman. Pierry is a US-based specialist in optimizing campaigns in Salesforce Marketing Cloud. The deal provides the media agency with technology consulting expertise that complements its marketing services and better positions it against the competitive threat from technology and consulting players like Accenture, IBM and Deloitte.

Shortage of cyber security professionals and capabilities across the data value-chain

Buyers continue to tell us about shortages of data scientists and cyber security professionals, which is driving investment in these spaces at premium prices. There is notable interest from acquirers in firms that help businesses convert unstructured big data into smart data that is securely accessible in the right places within an organization.

The continued growth of cloud solutions and connected devices is expanding the big data that is available to businesses. Advancements in artificial intelligence (AI) is leading to the development of advanced analytical tools that can convert this information into actionable data sets.

Network Related Services (Orange) acquired Business & Decision, a leading player in Business Intelligence and CRM with strong capabilities in data governance and data analysis. The deal is part of the buyer’s strategy to become a global player across the entire data services value-chain. Business & Decision will benefit from offering its clients a broader set of digital transformation capabilities across adjacencies like connected systems, cloud computing and cyber-security.

9IT Services© Equiteq Advisors Ltd. 2018

Over the next year, we anticipate a continued rise in deal flow related to companies that advise on utilizing the latest advanced technologies. We expect buyers to look for opportunities to build functional and sector-specific RPA skills organically and via acquisition. The prevalence of digital disruption across industries and functions will continue to attract interest in technology services from a diverse set of strategic buyers. Furthermore, the attractive growth prospects in the space will also support strong financial buyer activity.

Rising buyer demand for AI and robotic process automation solutions

Through the year there was rising buyer demand for skills related to the assessment and implementation of robotic process automation (RPA) tools. The promise for clients is efficiency gains that will create competitive advantages. Machine learning models are also being considered to predict and identify cyber-attacks, the threat of which will rise with the proliferation of data across the organization.

Accenture acquired UK-based Genfour, a pure-play automation consulting firm focused on assessing, implementing and managing automation solutions. The deal was followed shortly after with an investment and partnership by Accenture in labor automation platform WorkMarket. Later in the year, IBM and NTT Data announced partnerships with Automation Anywhere, which uses its RPA platform to develop software bots that handle repetitive work functions.


Figure 1 IT services M&A activity, annually (2008 to 2017)

Note: Bubble size reflects comparative average deal size for the respective year.

2008 20132009 20142010 20152011 20162012 2017

500

0

1,000

Num

ber

of d

eals

Industry trends

Digital transformation consulting

Areas of industry convergence

IT servicesManagement consulting

Media agencies

Buyers in adjacent industries may be willing to pay a strategic premium for an acquisition that enables expansion into a new space. See Tip 3 in the back for our perspectives on how to consider buyers across adjacent industries.

Hot spaces

Healthcare consulting

Digital transformation

Advanced data analytics

Cloud computing

Cyber security

Connected systems

Advanced building information modeling

IT services Engineering consulting

HR analytics

IT services Human resources

The optimum size of a transaction will vary among buyers and the specific opportunity that they are considering. See Tip 1 in the back of the report for our perspectives on the relationship between business size and acquisition appetite.

In addition to running a competitive well-negotiated sale process, there are plenty of steps that owners can take to reduce risk in the eyes of a buyer which can make a material difference to their target deal structures. See Tip 2 in the back for our perspectives on the factors that influence deal structures.


Regional reviewM&A activity in Australia & NZ rose; Dips in other regions.

Figure 2 Regional review

45% 40%

8%

3%4%

Note: Deal sizes and valuation multiples are median figures for the respective region.

High-profile cross-border acquisitions across the knowledge economy are common and enable foreign buyers to penetrate new markets, gain new clients and grow revenues with existing global accounts. See Tip 4 in the back for our perspectives on incorporating international buyers into your sale process.

North America

Revenue multiple: 0.8xEBITDA multiple: 8.2x

% Cross-border deals: 14%

283 deals (down 2%)

$23.9m Deal size

Rest of the World

Revenue multiple: N/AEBITDA multiple: N/A


26 deals (down 33%)

$9.3m Deal size

Australia & NZ



22 deals (up 6%)

$3.0m Deal size

Europe



255 deals (down 10%)

$8.2m Deal size

Asia Pacific (excl. Australia & NZ)



49 deals (down 26%)

$7.5m Deal size

Cross-border deals accounted for 21% of all deals


Overview of equity market performance The Equiteq IT Consulting Share Price Index touched new ten-year highs.

Figure 3 Equiteq IT Consulting Share Price Index

Figure 4 Equiteq IT Consulting Share Price Index (2008 to 2017)

130

120

110

100

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80

70Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

IT Services A. May 7: Estimations of the result of the French Presidential Election second round announced.

B. Jun 8: UK General Election ends in hung parliament.C. Sep 24: Angela Merkel wins fourth term in German elections.

D. Dec 19: Congress approves Republican tax plan in the US.

S&P 500

A B C D

150

250

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0

Global financial

crisis

European debt crisis volatility

Jan

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Note: The Equiteq IT Services Share Price Index is the only published share price index which tracks the listed companies within the IT services industry. You will be able to receive further information on the index and its performance by joining Equiteq Edge at equiteq.com/equiteq-edge. The index is continually revised to consider new listed companies and to remove businesses that are no longer relevant in each quarter.

IT Services S&P 500

http://www.equiteq.com/equiteq-edge


Valuation multiples and trendsValuation multiples for both M&A transactions and publicly traded companies are robust.

When reviewing this section, please note the issues of interpretation, along with the wide range of company and deal specific factors that influence the valuation of a knowledge-intensive services business. The figures in this report are primarily a comparative guide and should not be used by sellers or buyers to value a business, for which we recommend you obtain independent financial advice.

See Tip 5 in the back on the key considerations when interpreting valuation metrics.

As their quoted valuation metrics and cash balances rise, so does competition for assets from listed buyers, who are looking for new avenues of growth and are able to make earnings accretive acquisitions by paying a discount to their premium earnings ratio. See Tip 6 in the back for our perspectives on what rising share prices implies for listed buyers.

Figure 5 Enterprise Value (EV) as a multiple of Last Full Year (LFY) unadjusted revenue and EBITDA

M&A transactions Listed consultants Interquartile range

Q1 Q1Q3 Q3

Median

LFY Revenue (x) LFY EBITDA (x)

0.9x 9.1x

1.2x 12.0x

Note: The interquartile range is a measure of variability, based on showing the range of data in ascending order from the 25th percentile (Q1, 1st quartile) result to the 75th percentile (Q3, 3rd quartile) result.

0.5x 7.4x1.7x 12.0x

0.8x 9.5x1.6x 14.8x


Figure 7 Valuation metrics, 2008 to 2017 (listed companies)

LFY

EBIT

DA

mul

tipl

e (x

)

LFY

Rev

enue

mul

tipl

e (x

)

EBITDA multiple (LHS) Revenue multiple (RHS)

14.0 1.4

1.0

1.2

0.8

12.0

0.6

10.0

0.4

8.0

0.2

6.0

4.0

2.0

0.0 0.02008 201720162015201420132012201120102009

Figure 6 Valuation metrics, 2008 to 2017 (M&A transactions)

LFY

EBIT

DA

mul

tipl

e (x

)

LFY

Rev

enue

mul

tipl

e (x

)

EBITDA multiple (LHS) Revenue multiple (RHS)

14.0

1.0

1.2

1.4

0.8

12.0

0.6

10.0

0.4

8.0

0.2

6.0

4.0

2.0

0.0 0.02008 201720162015201420132012201120102009

Note: Multiples represent the moving average over the last four quarters.


Strategic and private equity buyer trends Listed technology consultants with innovative digital capabilities dominated the list of serial buyers.

AtosAtos announced 8 acquisitions in 2017, which included the acquisition of three healthcare consulting businesses. The three acquisitions bring Atos expertise within technology adoption, project management, electronic health record implementation and optimization capabilities, and population health and analytics. The deals follow Atos’ acquisition of Anthelio Healthcare Solutions in 2016. Around 400 healthcare consultants will join Atos as part of its recent acquisitions and the firm now expects to generate over €1bn in revenue annually in the healthcare sector. The year ended with Atos unsuccessfully attempting to acquire Gemalto, a significant global player in the production of chips for mobile phones and credit cards for $5bn.

KPMGAfter only making a limited number of reported acquisitions in 2016, KPMG boosted its deal flow with 11 reported acquisitions in 2017. These included several interesting technology deals in blockchain, fintech services and Oracle EPM. As part of its full year financial results, KPMG announced that it’s continuing its multi-year global investment program and this year invested over $1bn in new services, technology solutions, alliances and M&A, with a focus on data & analytics, strategy, cyber security, digital labour and audit.

Accenture Accenture continues to be the most active buyer across consulting, reporting c.30 acquisitions in 2017. This included acquisitions of technology and consulting firms, as well as design and marketing capabilities. Some industry analysts have suggested that Accenture or Capgemini may be potential acquirers for one of the leading media networks, although Accenture CEO Pierre Nanterme gave a strong signal on a recent quarterly earnings call that he is not interested in large-scale M&A and remains focused on tuck-ins with very specific and differentiated capabilities.

CapgeminiCapgemini started the year with a major push into the North American digital consulting space, acquiring a digital strategy & design consultancy and a managed services provider to the insurance industry. The acquisitions were followed with the purchase of an eCommerce business in France and a digital media business based in Chicago. CEO Paul Hermelin told French newspaper Le Figaro that the business could be pressured into a takeover in the advertising sector if rival Accenture made a major acquisition in the space.

CGI GroupCanadian IT services buyer CGI Group rapidly increased its activity in 2017 reporting 6 acquisitions. Its most notable acquisition was of Affecto, a Nordic data analytics and business intelligence services firm, that significantly expanded the buyer’s operations in Northern Europe. Over Summer, CGI reported a very active M&A pipeline and notable growth in its US commercial and federal businesses. In September, equity analysts at Canaccord Genuity said that the buyer will remain active on M&A with larger transformational M&A being a strategic priority.

Selected serial strategic buyers

34% of all deals were by serial buyers (down from 35% in 2016).

26% of all deals were by listed buyers (up from 22% in 2016).

6% of buyers were financial buyers (in line with 6% in 2016).


Selected transactions

Q1

Q2

Note: Deals shown in the quarter that they were announced. Some transaction details rely on third party information sources that have not been verified. LFY = Last Full Year.

Equiteq advised

Target: TCube SolutionsProperty and casualty insurance software and services

Buyer: Capgemini

Deal value: Undisclosed

Target: Focus Group EuropeServiceNow consulting services provider and software reseller

Buyer: Accenture


Target: Business & DecisionBusiness intelligence & CRM consulting

Buyer: Network Related Services (Orange)

Deal value: €40m (0.3x LFY revenue)

Target: EccellaData management and analytics consulting

Buyer: NGDATA


Target: ToMont SolutionsOracle EPM and OBIEE consulting services

Buyer: KPMG


Target: Company85Data centre, workspace, cloud, security and network services

Buyer: Telstra


Target: GenfourAssessing, implementing and managing automation solutions

Buyer: Accenture


Target: Day1 SolutionsCloud consulting firm with an advanced set of analytic and cognitive capabilities

Buyer: Deloitte


Target: CJS Solution Group (d.b.a. HCI Group) Healthcare IT services

Buyer: Tech Mahindra

Deal value: $110m (1.0x LFY revenue)

Target: EmantrasDigital education

Buyer: GP Strategies


Target: OneCloud ConsultingCloud and software-defined infrastructure services

Buyer: ePlus


Target: ITPM ConsultingTransformative infrastructure services to banking & finance, insurance and shipping sectors

Buyer: YASH Technologies


Target: Ciber (North American and Indian assets) IT consulting, services and outsourcing

Buyer: HTC Global Services

Deal value: $93m (0.3x LFY revenue)

Target: AcutestSoftware testing provider

Buyer: Capita



Q3

Q4

Equiteq advised

Equiteq advised

Equiteq advised

Target: BitvisDesign center for FPGA and embedded software development

Buyer: Acando


Target: Cloud Technology PartnersCloud services

Buyer: Hewlett Packard Enterprise (HPE)


Target: Pursuit Healthcare AdvisorsHealthcare IT consulting

Buyer: Atos


Target: JKVinePerformance engineering and testing for business systems

Buyer: Deloitte


Target: CompuCom SystemsEnd-to-end managed services, technology and consulting

Buyer: Office Depot

Deal value: $1bn (0.9x LFY revenue)

Target: cDecisionsSalesforce CRM implementation specializing in serving financial services clients

Buyer: PwC


Target: Affecto Business intelligence and enterprise information management solutions and services

Buyer: CGI Group

Deal value: €98m (0.9x LFY revenue)

Target: Pierry Marketing software integration and solutions specializing in Salesforce Marketing Cloud

Buyer: Wunderman (WPP)


Target: MorphickManaged detection and response (MDR) services

Buyer: Booz Allen Hamilton


Target: Logicalis SMCTechnology-enabled solutions for service management

Buyer: DXC Technology


Target: AricentDigital design and engineering services

Buyer: Altran

Deal value: $2bn (3.1x LFY revenue)

Target: AFON IT services firm with expertise in delivering ERP solutions

Buyer: EOH


Target: NAIT Consulting Premium Consulting Partner of Salesforce, certified in Sales & Service Cloud, Developer and Pardot

Buyer: VISEO


Target: InvestitInvestment management analytics and benchmarking

Buyer: Accenture


The IT Services Global M&A Report 201818 Segment Review

John Sandom, Brand agency.

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© Equiteq Advisors Ltd. 2018 19Tips

Tips

Tip 1: The relationship between business size and acquisition appetiteAlthough landmark deals grab headlines, there is notable deal flow at smaller transaction sizes, as highlighted by the large difference between mean and median deal sizes across segments each year. Nevertheless, we typically find that serial buyers do not focus on smaller deals below certain revenue thresholds, unless they offer exceptional synergy or intellectual property or are part of a team hire with limited cash consideration being paid. Buyers may also pay a premium for larger businesses with an established brand, attractive client relationships, embedded intellectual property and the investment in infrastructure that will enable future growth. The importance of revenue size to many buyers, highlights the benefits of setting a clear growth plan and a target scale at exit.

Tip 2: The factors that can influence a deal structureA knowledge-intensive services acquisition can be structured in a variety of ways, but typically involves some mixture of upfront cash element, fixed deferred cash and an earn-out. The earn-out typically lasts 2 to 4 years and offers additional compensation in the future if the business achieves certain financial goals. There are many factors which influence deal structure, however those features which tend to drive more significant earn-out elements include:

• Owners’ desire to share in synergy benefit and access to the buyers’ clients;

• Buyer’s perceived risk of acquisition, including dependency on the owner and ability to retain talent, which are often higher risks for smaller companies;

The following tips relate to some of the strategic issues that business owners on a sale journey should consider while reviewing the data analysis and findings within the report.

• Nature of the buyer;

• Nature of the sale process; and

• Owner awareness and ability to negotiate on deal structuring options.

There are a variety of steps that owners can take to reduce transaction risk for a buyer, which can improve target deal structures. Furthermore, we find that deal structures can be improved upon in well-managed competitive negotiations.

Tip 3: Considering buyers across adjacent industriesConvergence is a continuing trend in both operational and M&A growth for large players across the knowledge economy. Buyers in adjacent segments are often willing to pay premium prices that reflect the considerable synergy opportunity of cross-selling a broader set of complementary services among existing and new clients. Sellers should be aware that the highest price could therefore come from a strategic buyer outside of your core industry. Considering appropriate buyers across adjacent segments and appropriately positioning the synergy opportunity with these buyers is crucial to effectively managing a broad sale process.

Tip 4: Considering international buyers Acquiring in desirable regions enables strategic buyers to gain quick access to lucrative markets, brands, intellectual property, local market knowledge, new clients and specific local expertise. As a result of this, overseas buyers may pay a premium to gain a market foothold.

It is therefore important to consider a range of appropriate international buyers in a broad sale process. To attract these buyers to the local market, it is important to demonstrate the attractiveness of the market and its position. It is also key to articulate why the acquisition will be less risky and deliver a faster return than opening an office and recruiting local talent.

The IT Services Global M&A Report 201820 Tips

Tip 5: Key considerations when interpreting valuation metrics

The typical metrics used by a buyer to value a knowledge-intensive services business are Enterprise Value (EV) as a multiple of a seller’s last full year (LFY) of revenue and EV as a multiple of a seller’s LFY of EBITDA (referred to as “valuation multiples”). A buyer will typically consider reported valuation multiples on comparable M&A transactions, although only a small proportion of deals in the knowledge economy report revenue multiples and an even lower proportion report EBITDA multiples.

On larger transactions, buyers may also consider the valuation multiples of large global listed companies that are tracked within the Equiteq Knowledge Economy Share Price Index. Their valuation multiples are quoted publicly on a stock exchange at a given point in time and are therefore useful benchmarks of valuation based on current market sentiment.

It should be noted that to directly compare publicly quoted valuation multiples with transaction multiples requires the application of a strategic control premium and a liquidity discount, which can vary between company and equity market. Furthermore, valuation multiples for both transactions and listed companies typically relate to historic unadjusted financials. These issues with interpretation are compounded for EBITDA valuation metrics, where companies may under-report profits and not account for adjustments with respect to one-off items and equity components within salary expenses. These variables can contrive to increase a reported unadjusted EBITDA multiple figure.

Given these issues of interpretation, along with the wide range of company and deal specific factors that influence the valuation of a knowledge-intensive services business, valuation multiples will vary widely. The figures in this report are therefore primarily a comparative guide and to show trends year on year. They should not be used by sellers or buyers to value a business, for which we recommend you obtain independent financial advice.

Tip 6: What rising share prices means for listed buyersAs the publicly quoted valuation multiples and cash balances of listed buyers rise, so does competition for assets from this buyer group. Listed companies that are growing will be looking for new avenues of growth to meet shareholder expectations, and acquisitions quickly enables them to achieve this.

Earnings per share is a key metric that is tracked by public company shareholders to consider the dividend potential of the business. Earnings accretive acquisitions are often a key target of listed businesses. An accretive acquisition will increase a listed buyer’s earnings per share and can be quickly

achieved by paying a forward EBITDA multiple that is at a discount to a buyer’s own quoted EBITDA ratio. Therefore, premium and rising publicly quoted earnings ratios offers a buyer more scope to make earnings accretive acquisitions at higher prices.

With respect to deal structuring, some of these buyers will also be able to offer equity components to target companies. Listed equity is increasingly valuable as share prices rise and can be used to create more compelling offers over private acquirers.

Tip 7: Key considerations when selling to an accounting firmProfessional services buyers are looking to further expand their “Channel 2” (non-assurance) advisory services, which are considered a high growth segment for this buyer group and offers significant cross-selling opportunities with their assurance / tax client base. This buyer group is acquisitive and transaction structures typically involve non-cash components such as partnership in the accounting network. Buyers tend to operate on a territory model so have an aversion to acquiring diversely spread multi-territory businesses.

Tip 8: Key considerations when selling to a private equity firmPrivate equity (PE) buyers differ from strategic buyers, in that the former acquire strictly to realize a cash return on their invested equity, usually after 3 to 5 years. Strategic buyers typically acquire to realize long-term strategic value. As a result, PE buyers will look for specific traits in an acquisition and selling to a PE buyer will have different implications as compared with selling to a trade buyer.

To make a return on their invested equity, PE buyers look for a company that has value enhancement potential and acquire it at a favorable price with financing. With knowledge-intensive services businesses, they are attracted by the relatively high profit margins compared to other industries, high levels of profit to cash conversion, the potential for high growth if a business is in a hot sector and the barriers to entry that can be maintained if proprietary expertise is retained and leveraged through intellectual property.


Marc Jantzen, Performance Improvement.

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The IT Services Global M&A Report 201822

Key definitions Equiteq segments the knowledge economy into five key segments, which span a broad array of knowledge-intensive services. These sub-sectors are defined further below:

Appendix

For the purposes of this report we have broken down buyers into four groups, defined further below:

Management consultingFirms engaged in strategic or operationally focused business advisory services.

IT servicesFirms focused on IT architecture or strategy, IT implementation and maintenance.

Media agencies Firms in this space cover all the main disciplines relating to the advertising and marketing process.

Engineering consultingFirms involved in professional services relating to engineering and construction.

Human resourcesFirms engaged in human capital management or related technology consulting, employee benefit services, leadership consulting, training and recruitment.

Appendix

Private equity or financial buyers are investment firms investing private capital into businesses, which are typically held and exited after a hold-period.

Strategic or corporate buyers are non-private equity investors who have existing businesses which will typically make acquisitions that form part of their existing operations.

Serial buyers are those buyers that have made multiple acquisitions over the last three years.

Listed buyers are those buyers whose equity is publicly traded on a stock exchange.

© Equiteq Advisors Ltd. 2018 23

A quick word on the dataThis report has been compiled through the utilization of multiple data sources including proprietary news feeds, various third-party information sources, and data services. Additionally, our daily activities in the M&A marketplace with buyers and sellers provide unique insights as to emerging trends and informs our research report’s point of view.

It is important to note that financial data, including transaction valuation multiples, are derived from various sources including S&P Capital IQ and PitchBook information databases, combined with our daily activities in the market with buyers and sellers that we utilize on an anonymized basis. M&A volumes (the number of transactions completed) for the current year being analyzed are estimated based on actual deal volumes and the application of an adjustment factor to account for transactions announced, but not immediately captured in our databases. Due to refinements in data and market definitions, historic figures may vary between our reports.

Appendix

Equiteq is the global leader in providing strategic advisory and Mergers and Acquisitions (M&A) services to owners of knowledge rich, often people dependent businesses.

There are unique challenges to value growth and equity realization for shareholders and investors in this space. We help owners transform equity value and then realize maximum value through global sale processes.

About Equiteq

The IT Services Global M&A Report 201824 Appendix

Join Equiteq Edge, our free source of information, advice and insight to help you prepare for sale and sell your knowledge-intensive services firm. Equiteq Edge gives you access to thefindings of unique research conducted amongst buyers ofknowledge-intensive services firms from around the world,insight from those who have sold their businesses and other expert advice.

Join Equiteq Edge at equiteq.com/equiteq-edge

Further resources

Equiteq has offices in New York, London, Singapore and Sydney. To contact us, either email [email protected] or call your regional office on:

UK: +44 (0) 203 651 0600North America: +1 (212) 256 1120Asia-Pacific: +65 6352 7482Australia and New Zealand: +61 2 9051 9007

Get in contact

http://www.equiteq.com/equiteq-edge

mailto:info%40equiteq.com?subject=

© Equiteq Advisors Ltd. 2018 25Appendix

Disclaimer Equiteq is an M&A and strategic advisory firm that exists to provide you, the owners of knowledge-intensive services businesses, with the best possible information, advice and experience to help you make decisions about selling your firm and preparing it for sale.

What follows is a legal disclaimer to ensure that you are aware that if you act on this advice, Equiteq cannot be held liable for the results of your decisions.

We have obtained the information provided in this report from sources which we believe to be reliable, and we have made reasonable efforts to ensure that it is accurate. However, the information is not intended to provide tax, legal or investment advice. We make no representations or warranties in regard to the contents of or materials provided in this report, and exclude all representations, conditions and warranties, express or implied arising by operation of law or otherwise, to the extent that these may not be excluded by law.

We shall not be liable in contract, tort (including negligence) or otherwise for indirect, special, incidental, punitive or consequential losses or damages, or loss of profits, revenue, goodwill or anticipated savings, or for any financial loss whatsoever, regardless of whether any such loss or damage would arise in the ordinary course of events or otherwise, or is reasonably foreseeable or is otherwise in the contemplation of the parties in connection with this report. No liability is excluded to the extent such liability may not be excluded or limited by law.


Contact usIf you would like more information on our IT Services Global M&A Report 2018, our company or the various services we

offer please don’t hesitate to get in touch.

Email: [email protected]

Website: equiteq.com

Equiteq has global reach through its offices in New York, London, Singapore and Sydney.

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The IT Services Global M&A Report 2018 - equiteq.com · announced partnerships with Automation Anywhere, ... Oracle EPM and OBIEE consulting services Buyer: KPMG Deal value: Undisclosed