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2024 India IT Services M&A Deals Tracker

January 23, 2025 50 0 nasscom insights IT Services

2024 India IT Services M&A Deals Tracker

The report includes the Indian IT Services M&A (PE and Strategic) details for CY24. The Indian IT services M&A remains the dominant force in the India M&A landscape, leading in both deal volume and value. Despite global economic uncertainty, the sector demonstrates resilience driven by digital transformation, cloud adoption, and AI integration.

Key Highlights

  • Overall Indian IT Services M&A
    • IT services led with majority share in the overall India M&A volumes.
    • Strategic deals contributed 59% to the overall India M&A deal value, driven by digital transformation, cloud adoption, and emerging technologies like AI.
    • M&A deal value in IT services sector increased in CY24 over CY23.

 

  • Indian IT services - Strategic M&A
    • Strategic M&A deal value increased by 25% in CY24 over CY23.
    • Domestic strategic M&A deals witnessed an increase in value in CY24 aided by positive economic environment.
    • FinTech led strategic M&As in CY24 with an y-o-y increase in deal value, maintaining its top position.
    • Access to IP and existing platforms, followed by scale and geographic expansion are the top strategic imperatives.
    • Building capabilities in Digital Experience and Digital Product Engineering, accounted for 28% of the strategic deals volume in CY24.

 

  • Indian IT services PE M&A
    • PE deal value and volume declined in CY24 due to rising cost of capital and cautious investment sentiment leading to reduction in mega deals.
    • PE deals were driven by sub $25 Mn transactions, highlighting a strategic emphasis on acquiring niche technologies and addressing capability gaps.

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