MUNICH | PARIS | LONDON | NEW YORK | October 13th, 2022 – Drake Star Global Digital Services Team is pleased to release Global Digital Services Industry Update Q3 2022, which showcases the sector's continued momentum despite tightened macroeconomic conditions. According to the report, strong deal activity and funding continued throughout the quarter with more than 365 M&A deals, totaling $40bn+ in disclosed deal value and more than $5bn raised across 260 deals.
“The current economic environment makes the investment case for services that enhance productivity and optimize cost more compelling than ever,” said Ralf Philipp Hofmann, Managing Partner and Member of the Executive Committee at Drake Star. “As a result, we have seen an overall shift in priority for digital transformation, resulting in strong momentum for the digital services sector.”
Sam Levy, Partner at Drake Star added, “We anticipate strong global demand for companies that are enabled by disruptive technologies such as AI, big data, and analytics, which drive significant revenue optimization and operational efficiencies for their clients.”
Drake Star has exclusively advised on the following three transactions in the sector in Q3 2022:
- Quad-C’s majority investment in Synoptek, a portfolio company of Sverica
- Exxeta’s recapitalization from ICG
- Cognodata sale to Audensiel
“Digital Services are the foundation of the overall tech industry’s growth,” said Christophe Morvan Managing Partner at Drake Star. “As digital transformation becomes a business priority for all industries, the digital services sector is well positioned to support this journey for companies in the coming months.”
Gaby Silverstris, Partner at Drake Star added, “Heading into Q4, we expect strong investor appetite for robust Digital Services companies with resilient business models that can demonstrate their ability to navigate the current conditions.”
Drake Star Digital Services Team: Ralf Philipp Hofmann, Christophe Morvan, Gaby Silvestris, Sam Levy.