IT Services M&A Update Q3 2026
Public cloud infrastructure & cloud services: AI, sovereignty and scale reshape M&A dynamics
Global M&A activity in public cloud infrastructure and cloud services remained robust during the first nine months of 2026. A total of 568 transactions were recorded, putting full-year activity on track to come in close to the prior-year level.
At the same time, buyers are becoming more selective and applying tighter valuation discipline. Strategic demand remains concentrated around AI-ready infrastructure, cloud security, sovereign delivery and managed services. These capabilities continue to support consolidation across the sector.
Key developments:
- Strategic premium: Strategic buyers are currently paying more than financial investors. This marks a reversal of the historical trend and indicates that the latter have regained discipline on the prices they pay.
- Valuations: EV/Revenue declined to 2.0x, which is below the long-term median of 2.3x, while EV/EBITDA of 15.5x remained stable and above the long-term median. Earnings quality is therefore gaining importance relative to revenue growth.
- Sovereignty becomes a buying criterion: In Europe, spending on sovereign cloud IaaS is expected to rise from US$12.6bn (2026) to US$23.1bn (2027). In Switzerland, the Swiss Government Cloud and AGOV are reinforcing this trend.
The full M&A update examines global and regional transaction activity and valuation developments through September 2026 and provides an overview of selected transactions in 2026.
Download the full M&A IT Services Update
Our two industry experts will be happy to advise you on all matters relating to M&A transactions in the IT services sector or the broader technology, media and telecommunications sector.
Contact our local industry experts
Partner
View profile
Partner
View profile