PARIS ­| LONDON | January 25th, 2023

The Bryan, Garnier & Co software equity research team is pleased to release: IT Services Update: “The digital transformation steams ahead” which takes a deep dive into market drivers, valuation, and M&A in the IT services industry.  

Though the economic slowdown is here, the digital transformation is still at the top of corporate agendas. Business model transformation, process automation, digital experience, supply chain resilience and, more recently, sustainable operations, require an increasing amount of IT work as these projects become mainstream. Valuation multiples for listed IT Services firms look to have reached a trough, and European players in this market have never been so cheap compared to their US and Indian peers since 2015. In parallel, there is a slowdown in M&A deals, but private equity funds remain very active in that domain, while some players refocus themselves on their most growing and profitable businesses through spinoffs.

Bryan Garnier’s latest White Paper reviews the business opportunities in the IT Services sector, as well as challenges for the industry. Read this report to learn about the key trends that will shape the IT services market, and why we consider the current low valuation multiples in the IT Services industry to provide further opportunities for M&A. Contact your Bryan Garnier representative if you would like to speak to the author, Gregory Ramirez.