Q3 2025 MSP Report: Deal Activity Surges Amidst Strategic Shift in Buyer Priorities

108 deals. $2.6 billion in disclosed value. 85% IT services.

Drake Star’s latest MSP M&A report reveals a sharp rebound in transaction volume and value in Q3 2025, signaling renewed momentum in the global managed services market.

While the macro environment remains uncertain, sophisticated acquirers continue to consolidate –prioritizing platforms with operational maturity, recurring revenue quality, cybersecurity readiness, and vertical expertise. Download the full report below.

Key highlights this quarter include:

• MSP M&A volume up 17% Q/Q with over 100+ transactions and a sharp rise in big-ticket deals.
• $2.6B in disclosed deal value, highlighting continued buyer appetite despite elevated capital costs.
• Top 10 strategic buyers have each acquired 5+ MSPs since late 2023.
• Cybersecurity, cloud transformation, and compliance capabilities are now central to MSP valuations.
  
  

MSPs that can deliver measurable client outcomes, support hybrid cloud environments, and scale efficiently remain in high demand.

Notably, two of Drake Star’s buy-side clients have transacted this quarter, Titan MSP acquired RFA and Focus Technology acquired Converged – two transactions that exemplify how leading MSP platforms are executing strategic acquisitions to broaden capabilities while maintaining operational discipline.

“The next wave of transactions will reward MSPs that combine growth with operational excellence. Cybersecurity maturity and the ability to deliver client impact are now make-or-break.” – Sam Levy, Partner, Drake Star

Download the full report below.