Sam Maness & Andy McEnroe
Mergers and acquisitions-related deal volume in the government technology solutions market decreased by 12% in the third quarter of 2024 compared to the same period last year, a report from Raymond James (NYSE: RJF) found.
According to the company’s quarterly market update, despite a decline in M&A deal value in the third quarter of 2024, total deal value in 2024 increased by 8% compared to the same period last year.
The report was published by Raymond James’ Defense and Government team, whose managing directors are 2024 Wash100 winners Sam Maness and Andy McEnroe.
M&A activities for government technology solutions
Regarding the breakdown of M&A activity by buyer type, strategic acquirers accounted for eight deals in Q3 2024, while private equity firms were involved in 22 deals.
M&A deals by private equity investors fell from 28 in the third quarter of 2023 to 22 in this year’s quarter, a decline of 21%.
Some of the M&A deals cited in the report include the Enlightenment Capital-backed proposed acquisition of Aeyon by the U.S. federal arm of CGI (NYSE: GIB), Cydecor’s acquisition of Artel, and General Dynamics Information Technology’s acquisition of Iron EagleX. (IEX) acquisition, and Exiger moves. Acquires data science company XSB.
Market performance of government technology companies
This report presented the stock prices and financial performance of publicly traded companies in the government technology and diversified IT market.
These companies include Booz Allen Hamilton (NYSE: BAH), CACI International (NYSE: CACI), ICF (Nasdaq: ICFI), Leidos (NYSE: LDOS), Parsons (NYSE: PSN), and Science Applications International Corporation. (NASDAQ), etc. : SAIC), Accenture (NYSE: ACN), IBM (NYSE: IBM).
Public Government High Tech Market Index Performance
According to the report, the Government Technology Index grew above average at 58.1 percent last year, compared to an annual average of 31.1 percent over the past five years.
The index rose 40.1% in the year-to-date period from 2024 due to international developments, solid financing dynamics and sector privatization by government agencies.
Raymond James noted in a report that the Diversified IT index outperformed the S&P 500 index last year, returning 36.4%.
