M&A Trends across MSP, IT, Cyber and Telco

This is a brief update on the latest M&A trends across the IT Services, Managed Services (MSP), Cybersecurity, and Telecom sectors.

Key Market Highlights

• M&A activity remains exceptionally strong, with approximately 466 MSP transactions completed in 2025, representing around 20% year-on-year growth. Deal values exceeded £4.3 billion, highlighting continued investor confidence in the sector. 

• Private Equity remains the dominant force in the market, participating in approximately 69% of disclosed MSP transactions, with more than 75 active PE-backed platforms currently acquiring businesses. 

• Businesses with recurring revenue, strong customer retention, cybersecurity capabilities, and cloud expertise continue to achieve premium valuations. 

Valuation Snapshot

Business Type	Typical EBITDA Multiple
Small MSPs	3x-5x
Mid-market MSPs	6x-10x
Platform-scale MSPs	10x-14x+
Cybersecurity / MSSPs	10x-14x+

Premium valuations are increasingly being achieved by firms with AI-enabled service offerings, managed security services, and strong Azure/AWS cloud practices. 

Telecom Sector Trends

Within the telecom market, acquisition activity continues to focus on:

• Managed connectivity and networking services

• Cloud and digital transformation capabilities

• Cybersecurity services

• UCaaS and CCaaS platforms

• Enterprise managed service offerings

  
  

Traditional telecom providers are increasingly expanding through acquisitions that strengthen their IT and managed services capabilities. 

Outlook for 2026

The outlook remains positive, with strong buyer demand for businesses that can demonstrate:

✅ High levels of recurring revenue

✅ Mature cybersecurity capabilities

✅ Cloud and digital transformation expertise

✅ AI-enabled service delivery

✅ Strong operating performance and customer retention

While deal activity is expected to remain robust, buyers are becoming more selective and are focusing on quality, scale, and strategic differentiation rather than growth alone. 

In summary, market conditions remain favourable for owners of IT Services, MSP, Cybersecurity and Telecom businesses, with valuation levels supported by continued consolidation, private equity investment, and demand for recurring revenue models. 

Considering Your Options?

Whether you're planning to grow through acquisition, explore investment opportunities, or simply want to understand the current value of your business, now is an excellent time to review your strategic options.

The combination of strong buyer demand, active private equity investment, and premium valuations for recurring-revenue businesses means many IT, MSP, cybersecurity, and telecom companies are attracting significant interest. 

If you'd like a confidential discussion about:

• The current value of your business

• Market appetite for your services and customer base

• Potential acquisition opportunities

• Private equity investment options

• Growth and exit planning strategies

Please get in touch. We'd be happy to share market insights and discuss what opportunities may be available to you and your business.