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MSP Market Update Q4 2024: MSP M&A activity surges to $2.2 Billion in Q4 2024

12 Feb 2025

Drake Star’s latest MSP Market Report details a notable surge in M&A and private placement activity driven by IT services outsourcing, operating cost efficiencies, and the rapid deployment of new technology. The report provides a deep dive into M&A activity for Q4, key industry trends, expected market growth, the most active strategic buyers and private equity investments in the space.

Some of our key takeaways include:

  • M&A deal value rose to $2.2 billion in Q4 2024 from $34 million in Q3 2024
  • Private placement activity in the MSP space saw a notable surge, driven by an increase in platform deals
  • The global managed service provider market reached $305 billion in 2024 driven by increasing IT complexities and demand for cost efficiency
  • Strategic buyers remain a driving force with 6 of the top 10 players investing in at least four MSPs

For more insights on the MSP market, click below to download the full PDF.

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