Issuu

IT Services + Digital Transformation Q2 2026 Update

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 Key Trends + Insights Managed Services Providers (MSPs) + Security-First IT Services MSP M&A in Q2 2026 continued to reflect a consolidation thesis focused on building scaled, security-led platforms. Buyers remained attracted to providers with recurring revenue, dense regional footprints, strong customer retention, and the ability to expand wallet share through cybersecurity, cloud, compliance, and emerging AI services. The quarter’s M&A exemplified that scaled MSP platforms are increasingly seeking broader geographic reach, stronger vertical or regional presences, and the ability to support customers across complex technology environments. Private equity interest remained strong, particularly in MSPs with opportunities to professionalize go-tomarket, layer in higher-value services, and pursue follow-on acquisitions in a fragmented market. Top-tier MSP assets are those positioned as strategic technology partners rather than reactive help desk providers, with differentiated value coming from security posture management, cloud modernization, AI enablement, and compliance-driven services.

Acquired by

Received Majority Investment from

Acquired by

Received Majority Investment from

Enterprise Application + Hyperscaler Partners Enterprise application and hyperscaler ecosystem partner activity remained one of the most strategically relevant areas of services M&A in Q2 2026, as buyers continued to pursue platform-specific expertise across mission-critical systems. The quarter’s activity reflected a clear preference for partners that sit close to core enterprise workflows, especially HCM, ERP, supply chain, project controls, manufacturing, and workforce management, where implementation complexity, ongoing optimization needs, and managed services opportunities create durable client relationships. Rapid AI adoption is beginning to pressure traditional time-and-materials delivery models, as automation increases implementation productivity and shifts client expectations toward faster deployments and outcome-based engagements. PEbacked platforms remained active in the category, using M&A to build scaled, multi-platform services businesses with broader cross-sell potential, stronger delivery capacity, and recurring managed services revenue. Overall, Q2 activity suggests that ecosystem partner assets remain highly attractive when they combine deep platform credentials, functional specialization, implementation scale, and lifecycle support capabilities.

Acquired by

AI + Data Services Q2 2026 M&A activity in data and AI services underscored a continued shift from general analytics and digital transformation capabilities toward specialized, implementation-oriented AI services that enable enterprises to operationalize AI at scale. Buyers appeared particularly focused on companies with differentiated technical depth across data engineering, cloud-native data infrastructure, model evaluation, MLOps / DataOps, and verticalized AI use cases, rather than broad-based strategy-only consultancies. The category also reflected growing convergence between data services, AI engineering, and vertical consulting, particularly in data-intensive sectors where domain expertise is critical to adoption. Q2’s M&A activity suggests that the most attractive assets are those with defensible technical capabilities, cloud and data ecosystem alignment, repeatable delivery models, and the ability to help clients move from experimentation to production-grade AI.

Acquired by

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 By The Numbers IT Services M&A Activity – Deal Count by Quarter 543 471 424

452

370 359

362 298 300

353

335

345 319 336

275

2020

2022

2023

2024

2021

2025

Q2 2026

2019

219

370

360

341 339 334

Q1 2026

2018

229 184

239 232

230 229

279

405

390

442

Deal activity increased again in Q2 2026, signaling continued strength in the IT Services + Digital Transformation M&A markets

473

500

499

Worldwide IT Spending Forecast – As of July 2026 Data center systems and infrastructure as a service (IaaS)1 are forecasted to be the top growth segments in 2026, largely driven by accelerating investment in AI infrastructure, cloud platforms, and intelligent applications

2025 Spending ($B)

2025 Growth (%)

2026 Spending ($B)

2026 Growth (%)

Data Center Systems

506

51.6

822

62.5

Devices

790

9.7

868

9.8

Software

1,271

13.9

1,468

15.5

Services

1,492

3.8

1,570

5.3

Infrastructure as a Service

222

25.3

287

29.3

Communications Services

1,296

3.3

1,354

4.4

Overall IT

5,577

10.7

6,369

14.2

Sources: PitchBook, Gartner

2025 IT Spending finished higher than initially reported in February 2026

1. IaaS provides on-demand cloud compute, storage, and networking, while IT Services includes the consulting, implementation, and managed services 3 delivered around those platforms.

2026 IT Spending Forecast has increased by close to 1 percentage point from April 2026 forecast

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

IT SERVICES PUBLIC COMPARABLES

Q2 2026 Public Markets Enterprise Value ($B)1 322.4 76.0 74.5 40.0 32.9 27.9 24.4 23.2 19.5 17.9 14.2 7.2 5.0 4.7

Company Name IBM Accenture Tata Infosys Fujitsu HCL Technologies Limited Capgemini CDW Leidos Cognizant Technology Solutions Wipro SAIC Insight Enterprises Rackspace

TTM EBITDA ($B) 19.6 12.9 8.2 4.9 2.7 3.3 4.0 2.1 2.4 3.9 2.0 0.8 0.6 0.3

EBITDA Multiple 16.5x 5.9x 9.1x 8.2x 12.0x 8.5x 6.1x 10.9x 8.0x 4.6x 7.0x 9.5x 8.6x 15.3x

Median:

8.6x

Note: 1. Market data as of 6/30/2026

Despite continued strength in IT Services M&A, public company valuations remained under pressure in Q2 2026. Multiple compression has been most pronounced among offshore, BPO, and discretionary digital engineering providers, where AI threatens headcount-based delivery models and clients continue to delay nonessential spending. By contrast, companies supported by mission-critical, mandate-driven, or recurring demand have demonstrated greater resilience. Hardware- and infrastructure-exposed providers have also outperformed as investors favor businesses positioned to benefit from the AI infrastructure buildout.

14.1x

12.4x

12.9x 9.8x

Public Valuations

8.6x

Median TTM EBITDA Multiples

6/30/2025

9/30/2025

12/31/2025

3/31/2026

6/30/2026

Historical Index Performance

2018

2019

2020

Sources: PitchBook, Refinitiv Indices based on equal-weighted prices Reflects companies listed in public comparables

2021

2022

2023

IT Services Public Comparables

2024

2025

2026

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 Additional Notable M&A Transactions

DATA & ANALYTICS

• May 2026 – OpenAI Deployment Company acquired Tomoro, a UK-based AI consulting firm focused on enterprise AI deployment, workflow transformation, and forwarddeployed engineering services • June 2026 – Straive acquired NextGen Invent, a US-based data and AI services firm focused on AI operationalization, analytics, and enterprise AI transformation solutions

• April 2026 – Cognizant acquired Astreya, a US-based technology services firm focused on AI infrastructure, data center operations, enterprise networking, and digital engineering services DIGITAL • April 2026 – Delta-v Capital invested in Praxent, a US-based digital engineering firm ENGINEERING focused on product strategy, software development, and fintech solutions

ENTERPRISE SOFTWARE CONSULTING

• May 2026 – UST acquired Taciti, a US-based enterprise applications consulting firm focused on SAP transformation, HCM advisory, and business process modernization • June 2026 – Velosio (backed by Court Square Capital Partners) acquired Domain 6, a US-based Microsoft consulting firm specializing in Dynamics, Azure, Microsoft 365, Fabric, data platforms, and business applications solutions

MANAGED SERVICES + SECURITY

• May 2026 – e4n invested in Katalyst, a US-based managed services and cybersecurity provider focused on IT infrastructure, security, and technology support solutions • June 2026 – Valiant Solutions (backed by Bluestone Investment Partners) acquired BreakPoint Labs, a US-based cybersecurity services firm focused on penetration testing, cyber operations, OT security, and national security cyber missions

CLOUD SOLUTIONS

• April 2026 – Caylent (backed by Gryphon Investors) acquired Pronetx, a US-based AWS customer experience consultancy focused on Amazon Connect and GenAI solutions • May 2026 – NTT DATA acquired WinWire, a US-based digital transformation services firm focused on Microsoft Azure, GenAI, cloud engineering, data engineering

• April 2026 – Bridge Defense acquired Syntelligent Analytic Solutions, a US-based national security services firm focused on intelligence analysis, geospatial analytics, cyber analytics, and infrastructure solutions GOVERNMENT • June 2026 – xFact (backed by Recognize) acquired Stonewall Solutions, a US-based SOLUTIONS technology services firm focused on digital transformation for the public sector

OTHER NOTABLE PE ACTIVITY

• May 2026 – Sunstone Partners invested in Peloton Consulting Group, a US-based enterprise applications and digital transformation advisory firm • June 2026 – Washington Harbour Partners invested in Computomic, a US-based data and AI consulting firm focused on Databricks delivery, enterprise data modernization, and AI infrastructure solutions 5

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 HVA On the Road – Conference Recaps The HVA IT Services + Digital Transformation team was on the road again this quarter, attending the Salesforce Agentforce World Tour in New York, Channel Partners Conference & Expo / MSP Summit in Las Vegas, ServiceNow Knowledge 2026 in Las Vegas, and SAP Sapphire & ASUG Annual Conference in Orlando – here are our key takeaways: Salesforce Agentforce World Tour • Salesforce’s New York stop centered on its “agentic enterprise” vision, positioning Agentforce 360 as a unified platform connecting employees, AI agents, applications, and enterprise data across Salesforce’s clouds. • Agentforce 360 was featured throughout the event, with demonstrations highlighting conversational agent development, hybrid reasoning that combines deterministic controls with AI-driven judgment, and voiceenabled customer interactions. • Data 360 was reinforced as the foundation for trusted agents, integrating structured and unstructured enterprise data to provide governed, real-time context for agent decisions and actions. • MuleSoft supports this architecture as the integration layer connecting Agentforce and Data 360 with external systems and enabling agents to execute cross-platform workflows through APIs. Salesforce Ecosystem Outlook: Salesforce is augmenting its traditional seat-based model with consumption- and outcome-oriented “digital labor” offerings. Agentforce 360 and Data 360 are becoming central expansion drivers, rewarding partners that can establish trusted data foundations, deploy governed agents, and demonstrate measurable business outcomes. HVA M&A Impact Commentary: We expect strong demand for partners with Agentforce and Data 360 implementation capabilities, vertical agent IP, and the ability to connect Salesforce with external systems through MuleSoft. Buyers are likely to prioritize firms combining agentic AI and data engineering expertise with proprietary accelerators and recurring managed services, including postdeployment agent monitoring, governance, and optimization. Assets demonstrating repeatable delivery and measurable ROI should attract the strongest buyer interest.

The Agentic Enterprise Stack – What Salesforce Is Rewarding AGENTFORCE 360 — The Execution Layer Conversational + voice-enabled agents · hybrid reasoning

DATA 360 — The Trust Layer Structured + unstructured data · governed real-time context

MULESOFT — The Integration Layer APIs · cross-platform workflows · external systems

Vertical agent IP and governed deployment Trusted data foundations are the gating capability Cross-platform integration depth wins the work

Seat-based licensing is giving way to consumption- and outcome-based “digital labor” – rewarding partners that prove measurable ROI

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 HVA On the Road – Conference Recaps Channel Partners Conference & Expo / MSP Summit • Record attendance of nearly 8,000 registrants across MSPs, MSSPs, systems integrators, VARs, solution providers, and ISVs – with 40% firsttime attendees – pointed to a still-expanding channel. • Leading MSPs have moved from experimenting with AI to operationalizing and monetizing it: AI is now embedded in ticket resolution, SOC workflows, monitoring, and onboarding, and packaged into priced offerings such as AI-assisted MDR. • Compliance emerged as a monetizable, recurring layer on top of cybersecurity, AI, and managed services – clients want an always-on posture, not point-in-time audits, with cybersecurity as the foundational anchor rather than an add-on. • AI-enabled managed services, AI-driven cybersecurity, and compliance automation are growing 2030% year-over-year versus flat, margin-eroding traditional work. Channel / MSP Ecosystem Outlook: The “autonomous MSP” – AI handling much of detection, decision-making, and remediation while humans supervise exceptions – is a genuine operating model shift, already visible in SOC / MDR and extending next into the service desk, IT operations, and compliance. Paired with a move to outcome- and consumption-based pricing, it reframes competition around revenue per employee rather than headcount growth. HVA M&A Impact Commentary: Deal activity and capital remain strong, but buyers are markedly more selective – prizing quality of earnings, margin consistency, and operating discipline over raw scale or logo count. AI maturity is now a genuine diligence factor, compliance and cyber maturity are valuation enhancers, and service sprawl or founder dependency are red flags. Valuations are diverging sharply, pushing owners to assess exit readiness earlier.

The Autonomous MSP Rollout – Where AI Is Landing First LIVE TODAY

EXTENDING NEXT

SOC / MDR

Service Desk

IT Operations

Compliance

AI detection and remediation already in production

Ticket resolution, monitoring and onboarding

Routine execution with humans on exceptions

Always-on posture replacing point-in-time audits

Traditional work: flat, margin-eroding

AI-enabled and compliance-led lines: 20-30% YoY

The shift reframes competition around revenue per employee rather than headcount growth

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 HVA On the Road – Conference Recaps ServiceNow Knowledge 2026 • Speaking to approximately 25,000 attendees, CEO Bill McDermott emphasized that enterprises must move beyond AI experimentation and begin deploying autonomous AI across core business processes. However, only ~16% of organizations have integrated AI-enabled workflows across business functions. • ServiceNow positioned its platform as the enterprise “system of action” for autonomous work, combining AI, data, workflows, integration, security, and governance to orchestrate execution at scale. • AI Control Tower was expanded into an enterprise-wide governance layer spanning five functions – Discover, Observe, Govern, Secure, and Measure – to inventory AI assets, evaluate risk, govern agent identities and permissions, monitor performance, and shut down rogue agents in real time. • ServiceNow introduced Action Fabric to let external AI agents – including Microsoft Copilot, Claude, and proprietary agents – securely trigger governed ServiceNow workflows and execute processes across systems through its MCP Server. • ServiceNow promoted Otto as its unified enterprise AI experience and showcased Autonomous CRM capabilities spanning lead qualification, follow-ups, quoting and ordering, and case resolution, reflecting the company’s broader push to embed AI throughout its product portfolio. ServiceNow Ecosystem Outlook: ServiceNow is expanding beyond its ITSM foundation into a horizontal platform for governed AI execution across CRM, employee workflows, security, risk, and cross-vendor processes. Data readiness, integration, identity controls, and AI governance are becoming critical prerequisites for deploying autonomous workflows at scale. HVA M&A Impact Commentary: Highly-credentialed ServiceNow partners with expertise across AI Control Tower, Autonomous CRM and CSM, ITSM, Workflow Data Fabric, Action Fabric, and security and governance are likely to attract strong acquirer interest. Buyers should continue pursuing specialists that can combine platform capacity with data, integration, and agentic workflow capabilities as enterprises move from AI pilots to governed production deployments.

From AI Experimentation to Governed Autonomous Execution FROM

AI experimentation •

Enterprises still piloting, not deploying

• •

SHIFT

The enterprise “system of action” •

Only ~16% have integrated AI-enabled workflows across business functions

AI Control Tower: discover, observe, govern, secure, measure

•

Autonomous AI not yet integrated and running core processes

Action Fabric + MCP Server: governed external-agent execution

•

Otto and Autonomous CRM: lead qualification to case close

Data readiness, integration, identity controls, and AI governance are now the prerequisites for scale 8

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 HVA On the Road – Conference Recaps SAP Sapphire + ASUG Annual Conference • Under the keynote theme “The Beginning of Better,” SAP centered its Sapphire 2026 message on the Autonomous Enterprise – an operating model in which people provide direction and oversight while governed AI agents execute end-to-end processes across core business functions. • SAP introduced Joule Work as a new AI-centric user experience through which employees describe desired business outcomes and Joule orchestrates the necessary workflows, data, applications, and agents. • SAP also announced the Autonomous Suite, expected to include more than 50 domain-specific Joule Assistants orchestrating more than 200 specialized agents. • SAP introduced Business AI Platform as a unified, governed foundation combining SAP BTP, SAP Business Data Cloud, and SAP Business AI capabilities. Business Data Cloud – now incorporating SAP HANA Cloud as a core component –was positioned as the trusted data and business-context foundation for enterprise applications and AI agents.

SAP Ecosystem Outlook: SAP is moving its AI strategy from insight toward governed execution, anchored in S/4HANA Cloud, RISE and GROW with SAP, BTP, and Business Data Cloud. With mainstream maintenance for most SAP Business Suite 7 applications ending in 2027, the continued ERP migration, process-standardization, and data-readiness wave should remain a major driver of ecosystem spending over the next several years. HVA M&A Impact Commentary: SAP partner M&A should favor firms combining S/4HANA migration and modernization capacity with Business Data Cloud, BTP, and AI expertise, proprietary accelerators, industry-specific IP, and recurring application management and optimization revenue. The approaching 2027 mainstream-maintenance milestone and the complexity of heavily customized ECC environments should sustain demand for scaled systems integrators and make specialized migration capabilities strategically attractive to buyers.

Enterprise 4 Autonomous People direct and oversee; governed agents execute end-to-end processes

Work + Autonomous Suite 3 Joule 50+ domain-specific Joule Assistants orchestrating 200+ agents AI Platform 2 Business SAP BTP + Business Data Cloud + Business AI on one governed foundation

AUTONOMY

SAP’s Path to the Autonomous Enterprise

Data Cloud 1 Business Trusted data and business-context foundation, now including HANA Cloud

Mainstream maintenance for most SAP Business Suite 7 applications ends in 2027 – sustaining the S/4HANA migration, process-standardization, and data-readiness wave

Harbor View Advisors IT Services + Digital Transformation Q2 2026 Update

Q2 2026 Recap + 2026 Outlook The healthy pace of IT Services and Digital Transformation M&A was sustained in Q2 2026, with activity continuing to favor scaled platforms and specialized providers positioned to support enterprise AI adoption. Acquisition strategies increasingly centered on businesses with differentiated capabilities across AI infrastructure, cloud platforms, and AI-enabled managed services. Gartner now forecasts worldwide IT spending will reach $6.4T in 2026, an increase of 14.2% from 2025, with the strongest growth concentrated in data center systems, Infrastructure-as-a-Service, and software. This expansion should support continued demand for IT Services providers capable of helping enterprises build, integrate, secure, and operate increasingly complex technology environments. However, the benefits are unlikely to be distributed evenly: AI infrastructure, AIenabled cloud platforms, and advanced software ecosystems are positioned to capture a disproportionate share of incremental spending, while more traditional or undifferentiated service categories may experience comparatively modest growth. Buyers are increasingly underwriting demonstrated AI capabilities rather than broad AI positioning, prioritizing providers that have embedded automation into service delivery or possess scarce technical talent, proprietary delivery frameworks, and repeatable methodologies capable of translating enterprise AI investment into measurable outcomes. Application and digital transformation partners are also becoming more strategically important because they control the data, workflows, integrations, and change management layers required to deploy AI across core business processes. Scaled platforms with recurring revenue, organic growth, premier technology partnerships, and proven AI-enabled delivery should continue to command premium valuations, while sub-scale or undifferentiated providers may encounter more limited buyer interest and greater valuation pressure.

Top-Tier Asset Profile ~$15-20M+ of Revenue

15%+ YoY Revenue Growth

40%+ Gross Margins

Technical Breadth and Depth

Strong and Growing Sales Pipeline, etc.

Attractive End Market Focus: Financial Services, Healthcare, Manufacturing, Government

Nearshore Delivery Resources

Mid-Market to Enterprise Client Credentials

Diversified Client Base

High Recurring Revenue / Revenue Visibility 10

HVA IT Services + Digital Transformation Expertise

Acquired

Retail-Focused Technology Services Provider

Operations Analytics

Acquired

Salesforce-Native ERP

Acquired

Acqui-hired

Tech-Enabled Medicare Compliance

VAR / MSP / MSSP

Received an Investment from

ERP / CRM + Digital Transformation Consulting

IT Services / Azure Consulting

Acquired

Acquired by

Acquired by Marketing Services + HubSpot Partner

Managed Services Provider

Received an Investment from

Insurance Digital Transformation

IT / F&A Staffing

IT Staffing / Services

IT Staffing

HR Tech Consulting

Mortgage Data & Analytics

Acquired by

Connect with Our IT Services + Digital Transformation Team

John Mathis Partner jmathis@hvadvisors.com

Jonathan D. Hollis Director jhollis@hvadvisors.com

Katherine Carlo Senior Associate kcarlo@hvadvisors.com

Andrew Moore Associate amoore@hvadvisors.com

Harbor View Advisors 904.285.4278 Jacksonville, FL & New York, NY

White geography icon - Free white geography icons

Linkedin Black Logo Icon App Transparent Background Premium Social Media Design for Digital Download 65386594 PNG

Instagram Logo White Circle Outline Icon IG App Transparent ...

harborviewadvisors.com Harbor View Advisors @hvadvisors

The material in this report is for information purposes only and is not intended to be relied upon as financial, accounting, tax, legal or other professional advice. This report does not constitute and should not be construed as soliciting or offering any investment or other transaction, identifying securities for you to purchase or offer to purchase, or recommending the acquisition or disposition of any investment. Harbor View Advisors does not guarantee the accuracy or reliability of any data provided from third party resources. Although we endeavor to provide accurate information from third party sources, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.