Gambit’s Software and IT Services (SITS) Market Review for Q2 2021 assesses the growth drivers of M&A activity and capital investment within the sector, considering the underlying market trends across industry subsectors and the factors contributing to strong investor confidence and sector attention.
Confidence and trading performance is high across all subsectors, underpinned by Covid-resilience, generation of recurring revenues, healthy profit margins and accelerated adoption of technologies from end users.
Record M&A volumes witnessed in response to the pandemic have highlighted software and IT services companies as key opportunities in focus, requiring investors to execute timely M&A strategies in order to maintain competitive advantage and retain market share. The current M&A environment presents an opportunity to explore succession strategies and crystalise shareholder value during a period of heightened investor appetite and SITS company valuations.
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