Cherry Tree & Associates | October 2025 | | Cherry Tree & Associates has been actively monitoring trends and activity in the Information Technology Services space for more than 10 years. Along with monitoring the large, public players in the space through our public company index (IT Services 60), Cherry Tree closely tracks middle-market M&A trends that directly impact middle-market owners, operators, buyers and sellers. | | The five sectors within the IT Services 60 are as follows: | |
- Managed Services
- IT Solutions (Integrators)
- IT Consulting
- Value-Added Resellers
- Staffing
| | Each issue of this newsletter highlights transactions involving Information Technology Services companies, as
well as performance metrics for the
IT Services 60. | | Cherry Tree also produces an IT Services M&A Market Update which is available for download below: | | Notable Recent Transactions | |
Insight Enterprises Acquires Inspire11
Insight Enterprises has acquired Inspire11, a Chicago-based firm specializing in business transformation, AI, and analytics. The deal adds nearly 400 skilled professionals and over 30 validated AI accelerators to Insight’s global team, enhancing its ability to deliver measurable value and accelerate transformation for Fortune 1000 clients across industries such as financial services, healthcare, and industrials. Together, they offer integrated strategies, proprietary AI platforms, and agile execution to help organizations quickly realize and sustain business results from advanced AI technologies.
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HashStudioz Acquires Maxify Digital
HashStudioz Technologies, a global leader in IoT, Data Analytics, AI, and custom software solutions, has acquired a majority stake in Maxify Digital, a boutique firm specializing in Salesforce, SaaS, and AI-driven services. The merger combines HashStudioz’s end-to-end technology expertise with Maxify’s innovative platforms in digital transformation for industries like aviation, travel, media, banking, and fintech. This partnership aims to accelerate innovation, scale platforms such as MaxAir 360 and MaxBag, and deliver greater value and impactful digital solutions to clients worldwide.
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IBM to Acquire Cognitus
IBM has agreed to acquire Cognitus, a Dallas-based SAP S/4HANA services provider known for its industry-specific, AI-powered solutions. This acquisition boosts IBM’s SAP capabilities, bringing Cognitus’ proprietary software assets and deep industry expertise, particularly in regulated sectors, under IBM’s global consulting and technology portfolio. The deal aims to accelerate SAP transformations for clients worldwide, integrating Cognitus’ innovative offerings and skilled team with IBM’s consulting advantage and advanced technology capabilities.
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Velonex Technologies Acquires SyCom (IT Services)
Velonex Technologies, a San Antonio-based provider of technology services, has acquired New Orleans IT company SysCom to expand its presence in the Southeastern United States. The deal brings SysCom’s regional expertise and client relationships under Velonex’s national infrastructure, promising clients a seamless transition and continued trusted service. The acquisition strengthens Velonex’s ability to deliver secure, scalable IT solutions to small and mid-sized businesses, while SysCom, led by founder Karlie Hull, maintains its focus on fast, reliable support and personal service. Both companies will combine resources to offer enhanced managed IT services, consultations, and project support, building on decades of experience and a commitment to technical excellence.
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ParkerGale Acquires RedZone
ParkerGale, a Chicago-based private equity firm, has invested in RedZone Technologies, a leading managed security service provider focused on highly regulated industries. Gary Simat, former CEO of Performive, joins RedZone as CEO, bringing technical and financial expertise to drive growth and evolve RedZone into a secure IT services platform centered on continuous, measurable outcomes for customers. This partnership aims to scale RedZone’s co-managed, security-first services, enhance strategic vendor relationships, and expand solutions for clients in sectors like credit unions and non-profits, while maintaining a customer-centric approach.
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Onepoint Acquires Logient
Wepoint, a new North American leader in AI and digital transformation, was formed through the strategic merger of the French international group Onepoint’s North American teams and Quebec-based Logient nventive. The combined entity, headquartered in Montreal and New York, unites over 600 experts, offering comprehensive services in generative AI, business process redefinition, cybersecurity, data, and cloud platforms for organizations across Quebec, Canada, and the U.S.. Wepoint aims to expand its team to 1,500 AI experts and reach $250 million in revenue by 2030, establishing Montreal as the nerve center for its operations and supporting clients in industries such as banking, energy, financial services, and manufacturing.
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IMB Partners Acquires e&e IT Consulting Services
IMB Partners, a private equity firm, has closed out its original investment vehicle for e&e IT Consulting Services and launched a new single asset continuation vehicle that will maintain ownership of e&e. This move gives existing investors the choice to exit or continue their participation, allowing IMB to keep supporting e&e’s growth as a leading IT consulting provider to government agencies in Pennsylvania, Florida, and beyond. Over the ten-year partnership, IMB helped e&e expand geographically, acquire E24x7, strengthen leadership, and build a resilient, recurring revenue business.
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Hathiant Acquires SJ Technologies
Hathiant, a Herndon, Virginia-based provider of mission-driven technology solutions for government and defense organizations, has acquired SJ Technologies to expand its capabilities and reach across the federal sector. The acquisition unites SJ Technologies’ specialized expertise in cybersecurity, IT modernization, and DevSecOps with Hathiant’s AI-driven approach to mission-critical solutions. Both companies share a culture of innovation and integrity, enabling them to deliver stronger, more comprehensive support to federal clients. Former SJ Technologies CEO Karen Lawton joins the combined team to continue advancing customer value and growth, while the integration enhances opportunities for employees and strengthens Hathiant’s position as a trusted partner in federal technology transformation.
| | Cherry Tree's "IT Services 60" index is comprised of roughly 60 publicly-traded companies with a collective market capitalization greater than $1.1 Trillion. | | IT Services 60 - Index Metrics | | Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis. Our firm specializes in serving middle market companies and their owners, whether private, public, or divisions of larger corporations. | | |
Important Disclosures
The information included in this publication has been obtained from public sources and is not based upon private or confidential Cherry Tree information. Cherry Tree gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. Cherry Tree makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. Officers, directors, partners of Cherry Tree and Cherry Tree proprietary investment funds may have positions in the securities of the companies discussed, and certain affiliates of Cherry Tree may recommend to specific clients the purchase and sale of securities discussed in the publication. This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. Cherry Tree or its affiliates may from time to time provide investment banking or related services to these companies. Like all Cherry Tree employees, the authors of this publication receive compensation that is affected by overall firm profitability. We undertake no obligation to update any information in this publication.
The ITS 60 Performance Index is a hypothetical index, and does not reflect an actual investment portfolio. Comparisons between the ITS 60 Index and other indices are for illustrative purposes only. Correlations in performance information for the ITS 60 Performance Index and other indices should not be relied upon as indicative of risks involved in owning or holding a portfolio of securities similar to the ITS 60 Performance Services Index. Past performance should not be relied upon as indicative of future performance.
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