Amid strong M&A activity in the technology services market, buyers continue to focus on three types of target companies: (1) MSPs, (2) cybersecurity and (3) cloud software expertise -- particularly Kubernetes cloud containers.Those findings surfaced in a Q3 2021 M&A report for the North American market from Corporate Finance Associates, an independent international investment banking firm serving middle-market businesses.Scroll through the report, and you'll see many of the MSP-related and security-related M&A deals that ChannelE2E and MSSP Alert covered in Q3 of 2021. But take a closer look, and you'll notice the M&A trend involving Kubernetes cloud containers -- and the race to secure those containers.
Technology Services Mergers and Acquisitions: Some Q3 2021 Highlights
Among the Q3 2021 deals that CFA noted:- Accenture acquired five cloud-native solutions providers in Q3 2021. (See all Accenture M&A deals listed here.)
- European consultancy Capgemini acquired Australia-based Empired, a Microsoft Azure cloud solutions provider with 1,000 employees.
- Although cloud data firm Databricks was not involved in an M&A transaction in Q3, 2021, its $1.6 billion capital raise in September at an enterprise value of $38 billion illustrates the enthusiasm of capital markets about cloud technology.
- Evoque Data Center Solutions acquired Silicon Valley-based Foghorn Consulting, an AWS Premier Consulting partner, Microsoft Azure Gold Partner, and Google Cloud Partner.
- IBM acquired Maryland-based BoxBoat Technologies, a container solutions provider that is partnered with AWS, Azure, Google Cloud, Docker, and Hashicorp.
- Also, IBM acquired Madrid-based Bluetab Solutions, a hybrid cloud consultancy with 700 employees.
- Dallas-based Microsoft Gold Partner Improving acquired Tahoe Partners, a Chicago-based Microsoft cloud solutions professional services firm.
- In late June, Microsoft and AT&T announced a strategic partnership in which AT&T will move its 5G mobile cloud network to Microsoft’s Azure cloud platform, and Microsoft will acquire AT&T’s Network Cloud intellectual property and technical expertise.
- Chicago-based Netrix acquired Chicago-based PSC Group, an AWS and Microsoft Azure partner.
- Large European IT solutions firm SoftwareOne acquired UK-based HeleCloud, a cloud-native AWS Advanced Consulting Partner.
