IT and Managed Services Market Update (October 2025)

Blackpeak are pleased to present our latest IT Services sector update report.

We are of the view that IT and Managed Services will continue to be an exciting sector for participants and investors, with macrotrends and market dynamics creating opportunities at an accelerating rate. Macrotrends are ever evolving, with the market currently punctuated by rapidly growing demand for AI, Cyber, Data & Analytics and more complex cloud infrastructures. Alongside this continuous evolution of solution portfolios, there are an increasing number of both PE-backed and founder owned companies competing alongside the long-standing giants of the sector across the spectrum of customer end-markets, and many now generating EBITDA of $10m+, and yet the market consolidation opportunity remains seismic.

Recent M&A activity reflects some of these trends – deals have been larger on average than prior years, cyber assets have been particularly sought after and a handful of PE-backed platforms have successfully found new homes and realised good returns. Overall volumes have, however, been lower than recent years with fewer smaller assets traded this year to date, partly due to some remaining disparity of value expectations, particularly when it comes to assets with portfolios weighted towards legacy solutions, as well as founder’s focusing on strategy execution ahead of considering a sale. We believe the coming year will be characterised by both ‘higher value and higher volume’ M&A activity, with a pick-up again in consolidation activity alongside continued demand from both strategic and PE buyers for best-in-class assets and/or in-demand sub-sectors.

Please reach out to the Blackpeak team if you would like to discuss the market and opportunities further:
Scott Colvin: scott@blackpeakcapital.com.au
Phoebe Orr: phoebe@blackpeakcapital.com.au

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