2024年印度IT服务行业并购交易追踪报告

2024 INDIA IT SERVICESM&A Deals Tracker Contents Scope & Methodology ■Scope of the report includes analysis of the M&A deals (PE and Strategic) in the Indian technologyindustry. ■The data for this report is sourced from the VCCEdge platform, press releases, company reports, newsarticles, industry reports and TechCircle analysis. ■M&A targets also include IT Buyers who have invested in Non-IT target. ■M&A deals between 1st January 2023 to 12th December 2024 have been included in the analysis. ■Analysis for strategic imperative and capability focus has been conducted on strategic M&A deals over$5 Mn. ■Sector-wise analysis for IT services strategic deals covers new-age internet startups. Key Takeaways In CY24, IT servicesled with34% share in overall India M&Avolumes ■Domestic (where both acquirer and acquireeare Indian) strategic M&A deals witnessed 2.4xincrease in value in CY24 aided by positiveeconomic environment. ■Mega deals (above $100 Mn) accounted for~20% of domestic IT services M&As, driven byexpansion to newer geographies and verticals. ■In this report we have bucketed deals in twocategories – •Strategic M&As - To achieve long-termgoals like market expansion, synergies, ordiversification. Within sectors, FinTech ledstrategic M&As in 2024 with an8x increase y-o-y in deal value,maintaining its top position •PE M&As - Driven by investment firms toenhance financial performance within a settimeframe. ■Key drivers - financial services’ digitaltransformation and rising demand for tech-driven solutions. ■Strategic deals contributed 59% ($35 Bn)to the overall deal value, driven by digitaltransformation, cloud adoption, and emergingtechnologies like AI. ■Travel and mobility tech ranked second indeal value ($557 Mn), with an increasing shifttowards larger value deals. M&A deal value in IT servicessector increased by 6.3% in CY24over CY23 Access to IP and existingplatforms, followed by scale andgeographic expansion are thetop three strategic imperativesfor IT services M&As in CY24 ■Deal value in IT services reached $9.9 Bnin CY24 from $9.3 Bn in CY23 driven byresurgence in high value transactions. ■M&A deal volume in IT services declined by13% y-o-y in CY24 as global uncertaintiesweigh in. ■Building capabilities in Digital Experience (DX)and Digital Product Engineering, accountedfor 28% of the strategic deals volume,highlighting a focus on customer-facing digitalplatforms and market-ready products. Within Indian IT services,strategic M&A deal valueincreased by 25% in CY24 overCY23 ■Cloud and AI related deals accounted for 20%of IT services strategic M&A deal volumes inCY24 reflecting focus on digital tech. ■Strategic M&A deal value reached $4.3 Bn inCY24 from $3.4 Bn in CY23. ■IT consulting accounted for 10% for the overallIT services strategic M&A deal volume in CY24as advisory and implementation servicesremain crucial for navigating tech transitions. ■Even though deal volume declined by 3% inCY24, but increased by 16.4% in H2CY24. IT services PE M&A deal valueand volume declined by 5% and17% respectively $25 Mn transactions, highlighting a strategicemphasis on acquiring niche technologies andaddressing capability gaps ■FinTech, EdTech, and Media & Entertainmentled PE deals with a combined share of 34% ofthe deal volume. ■IT services PE deal value declined from $5.8Bn to $5.5 Bn in CY24 due to rising cost capitaland cautious investment sentiment leading toreduction in large deals. ■Travel & mobility, the only sector thatregistered growth with deal volume and valuegrowing 1.6x and 2x respectively in CY24. ■PE deal volumes in CY24 was driven by sub M&A Playbook We reviewed M&As in the last 3 years to identify the best practices to execute M&As successfully.We have seen that rewarding M&A execution demands a structured and a proactive approach asoutlined below. In CY24, IT servicesled with 34% share in overall India M&A volumes M&A deal value in IT services sector increased by 6.3% in CY24 overCY23 Within Indian IT services, strategic M&A deal value increased by 25%in CY24 8x increase in deal value in FinTech led strategic M&As Domestic strategic M&A deals in the Indian IT services sectorwitnessed 2.4x increase in value in CY24 Access to IP and existing platforms, followed by scale and geographicexpansion are the top three strategic imperatives for IT services M&Asin CY24 Building capabilities in Digital Experience and Digital ProductEngineering, accounted for 28% of the strategic deals volume Acquihire and geographic expansion drive high-value deals with ~50%share IT services PE M&A deal value and volume declined by 5% and 17%respectively in CY24 PE deal volumes in CY24 was driven by sub $25 Mn transactions;FinTech, EdTech, and Media & Entertainment Tech led PE deals involume terms Appendix Illustrative Illustrative Acknowledgement We extend our gratitude to all contributors, partners, and our members for development of this report.Their insights, collaboration,