H1 2025 Managed IT Services and MSP Market Update

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GCG’s H1 2025 Managed IT Services and MSP Market Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment across key MSP segments including:

    • Cloud Platform Services (CPS)
    • Infrastructure & Hosting
    • Digital Transformation
    • Unified Communications
    • Managed Security Services Providers (MSSPs)

Key Takeaways:

  • The Managed IT Services and Managed Service Provider (“MSP”) industry continues its transformation in 1H 2025, with 121 deals totaling $1B+ as buyers pursued depth in capabilities (e.g., cloud-native solutions, cybersecurity capabilities, and outcome-based delivery models)
  • AI, multi-cloud complexity, and tool sprawl are reshaping MSP offerings – further driving platform convergence and managed security bundling
  • As private equity accelerates buy-and-build strategies, MSPs are navigating new complexities across hybrid cloud, verticalization, AI integration, and security service delivery – appetite remains strong, with sub-$20M add-ons fueling roll-ups across the industry

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