The 5-Deal Market: Technology Services M&A Report H1 2026

How 2% of transactions took two-thirds of the value in H1 2026

Technology services M&A entered a more selective phase in H1 2026. Deal volume fell 44% from the same period last year, and disclosed deal value dropped 40%. Capital continued to move, though it flowed to a small group of assets, with just five transactions accounting for 66% of disclosed value.

Behind the slowdown is a change in how buyers evaluate targets. AI has become a screening factor in every deal, and buyers are looking far more closely at what makes a business worth a premium. Assets that meet that bar are still attracting strong interest, while many others are struggling to find a buyer.

What Is Changing in Technology Services M&A?

• Diverging buyer strategies: Strategic acquirers made fewer but much larger bets, while financial sponsors stayed active through smaller deals and bolt-ons for existing portfolio companies.
• A higher bar for differentiation: Buyers are paying premiums for assets with clear strengths, such as deep expertise in regulated sectors, strong ecosystem partnerships, and AI that delivers measurable results.
• A widening valuation gap: Average multiples declined, but quality assets held close to last year’s levels, while generalist assets sold at a steep discount or not at all.

What the Report Highlights

• How deal activity and buyer behavior shifted in H1 2026, including the largest transactions of the half
• The three archetypes that now define a quality asset
• How multiples compare for quality and generalist assets
• What buyers paid for before 2025 and what sells in 2026
• The outlook for H2 2026, with key takeaways for sellers and buyers

As the market continues to reprice, understanding where capital is moving and what drives acquisition value will be important for Technology Services leaders, investors, and M&A decision-makers.

Download the report for Zinnov’s analysis of the H1 2026 Technology Services M&A market and the shifts shaping the months ahead.

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