Capstone Partners has released its 2020 Government IT Services Mergers & Acquisitions (M&A) Update. A year ago, we noted a brisk uptick in M&A activity in the Government IT sector through the first quarter of 2019 and wondered aloud how long the market would hold up. With the fiscal picture coming into focus as the months progressed, particularly as it related to defense spending, the pace not only sustained, it accelerated. When the dust settled at the close of 2019, 78 M&A transactions were completed in the space, representing an astounding 24% increase on 2018’s previous record year, and the most active year in more than a decade. Activity in January and February 2020 continued, and while CGI Federal was able to complete its acquisition of TeraThink in late March, the onset of COVID-19 and the impact of draconian nationwide mitigation measures has dramatically slowed the environment.
The report, available for download below, includes:
- 2019 Year in Review
- U.S. Government Services Valuation Index
- Transaction Volume and Disclosed Value
- Federal Information Technology Budget Highlights
- COVID-19 Market Correction Scenarios
- 2020 M&A Outlook
Please contact Managing Director David Brinkley for more information on the report or to learn about Capstone’s range of advisory services.
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