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August 2018

IT Consulting

Sectorwatch

M&A in the first half of 2018 for the IT services space remained strong. Spending on IT services is expected to reach $985b in 2018 and will continue to rise. IT services and consulting firms are leveraging M&A to take advantage of digital transformation and cloud services opportunity.

Industry Trends:

• Current revenue growth rate exceeds the average of the last 3 years by this amount, indicating that market momentum is increasing
• Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
• Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants