Amid strong M&A activity in the technology services market, buyers continue to focus on three types of target companies: (1) MSPs, (2) cybersecurity and (3) cloud software expertise -- particularly Kubernetes cloud containers.
Those findings surfaced in a Q3 2021 M&A report for the North American market from Corporate Finance Associates, an independent international investment banking firm serving middle-market businesses.
Scroll through the report, and you'll see many of the MSP-related and security-related M&A deals that ChannelE2E and MSSP Alert covered in Q3 of 2021. But take a closer look, and you'll notice the M&A trend involving Kubernetes cloud containers -- and the race to secure those containers.
Technology Services Mergers and Acquisitions: Some Q3 2021 Highlights
Among the Q3 2021 deals that CFA noted:
Container & Kubernetes Security: Major Market Focus
The M&A trend involving Kubernetes management and security software companies is undeniable.
The reason? Demand for such software is booming. By 2022, more than 75 percent of global organizations will be running containerized applications in production, up from less than 30 percent as of mid-2020, according to Gartner.
Amid all those deployments, end-customers and MSPs need to both manage and secure container workloads. The result: Worldwide container management revenue will reach $944 million in 2024, up from $465.8 million in 2020, Gartner indicated. Among the various subsegments, public cloud container orchestration and serverless container offerings will experience the most significant growth, Gartner added.
