Index Insider: After White-hot 2021, M&A Activity Cools

Hello. This is Stanton Jones with your weekly briefing on what’s important in IT and business services.
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M&A activity in the technology service sector in 2021 smashed nearly all previous records as service providers, technology vendors and private equity firms aggressively sought capabilities in cloud, engineering, analytics and cybersecurity.
A total of 307 technology services acquisitions in 2021 added up to a combined value of $51 billion. But when you look at the first quarter of 2022, you see the white-hot M&A activity started to cool. In 1Q22, there were just 56 transactions with a value of $2.6 billion. By both volume and value, this is the lowest result in five quarters (see Data Watch).
This does not mean M&A activity has come to a halt. Firms like AccentureDeloitteIBMPersistent and Tech Mahindra have been especially active investing in areas like cloud, cybersecurity and sustainability.
Rising interest rates, record inflation and general uncertainty about the state of the global economy have slowed activity over the past three months, which is likely to continue for the remainder of 2022.


Technology Services M&A Cools After White-Hot 2021


  • Swedish transport solutions company Scania signs five-year workplace agreement with Wipro (link).
  • French investment bank Crédit Agricole extends infrastructure agreement with Wipro (link).
  • Mitsubishi Motors Europe renews infrastructure and applications agreement with Kyndryl (link).
  • Airbus signs infrastructure and applications modernization agreement with Capgemini (link).


  • Capgemini acquires financial services advisory firm Chappuis Halder (link).
  • French multinational services firm Thales acquires cybersecurity advisory and managed services firms S21sec and Excellium (link).

About the author

Stanton Jones

Stanton Jones

Stanton leads ISG's Index research, helping providers, investors and ISG clients make sense of the global IT services sector. Stanton’s weekly newsletter, the Index Insider, is read by thousands of market stakeholders each week. An ISG Digital Fellow, Stanton has been quoted in Fast Company, Forbes and, and has appeared on national cable news.