IT Services Market in Canada: An Examination of Merger and Acquisition Activity, 2021

IT Services Market in Canada: An Examination of Merger and Acquisition Activity, 2021

This IDC Market Perspective provides an overview and analysis of IT and business services sector M&A deals announced in Canada. The document is limited to M&A deals of select service providers in Canada from 2016 to 2021. Dating back to 2016, M&A activity has been consistent, averaging between eight and nine transactions per year. 2020 was an unusual year for every sector of Canadian economy including the IT and business services sector, witnessing a decline in spending and acquisitions. However, in 2021, M&A volumes rose as demand for new digital capabilities expanded and large, global services firms used their cash and other capital resources to acquire smaller firms that have faced pandemic-related challenges. "Looking ahead into 2022, we expect the M&A market to be strong as the fundamental drivers remain in place, led by intense competition between corporates, strategic shift to digital, innovative and disruptive business models, and strong debt and equity markets," says Anu Mehta, senior research analyst, IT Markets at IDC Canada.

Please Note: Extended description available upon request.