From Scale to Sale: Winning Strategies in South East Asia’s Tech & Consulting M&A Landscape

Southeast Asia’s tech and IT services M&A activity has remained resilient, with deal volumes rising steadily over the past three years—from 177 transactions in 2022 to 178 in 20231 and reaching 187 in 20241. This growth underscores the region’s enduring appeal for both strategic and financial buyers, despite global economic uncertainties. 

What’s Driving the Next Wave of M&A? 

• Digital Infrastructure and Data Centers: Major investments—like KKR and Singtel’s US $1.3 bn deal for ST Telemedia’s Global Data Centres—signal strong appetite for digital infrastructure, cloud, and cybersecurity assets. Demand for scalable, secure platforms is fueling premium valuations, especially as AI and data sovereignty become board-level priorities 

• Sector Consolidation and Strategic Partnerships: Regional leaders are pursuing M&A to boost profitability and market share, with fintech, B2B SaaS, and digital consulting leading the charge. SentinelOne’s acquisition of PingSafe for over US $ 100 mn highlights the drive for scale, cross-border reach, and ecosystem integration 

• Global Buyer Interest: Foreign acquirers—especially from the US and China—accounted for nearly 56% of Southeast Asia’s tech M&A deals in 2024, with strategic buyers seeking high-growth, cross-border platforms and digital-first business models. Singapore remains the region’s launchpad for outbound and inbound M&A, thanks to its investor density, legal clarity, and regional HQ status 

• Premiums for Differentiation: Companies with recurring revenues, scalable SaaS, deep domain expertise, and embedded AI or automation consistently command higher multiples. Buyers are prioritizing targets with proven profitability, strong management, and clear paths to integration or platform expansion 
• Tailwinds for Consulting and Tech Services: The consulting and IT services sector is booming, with digital transformation, cloud migration, and AI adoption driving double-digit growth in spending. Skill shortages and the need for specialized expertise are making consulting firms attractive M&A targets—especially those with strong regional footprints and proprietary tech 

Who’s Buying? The Evolving Buyer Landscape 

The M&A landscape in Southeast Asia’s tech and IT services sectors features a dynamic mix of buyer types and increasing cross-border activity. Strategic buyers have consistently driven the majority of transactions—ranging from 54% to 56% ¹ while private equity and venture capital activity reflects growing interest in both mature and early-stage opportunities.  

             Source: Pitchbook 

What Global Strategic Buyers Want 

• Regional Platforms: Buyers seek scalable businesses that solve real local problems and can be expanded across ASEAN and beyond. 

• AI & Automation: Embedded AI, automation, and digital workflow solutions are particularly attractive, as buyers look to future-proof their portfolios. 

• Sector Specialization: Deep expertise in fintech, healthtech,  tech, and digital infrastructure is in high demand. 

• Proven Integration Capabilities: Companies that have successfully executed prior integrations or partnerships are viewed as lower-risk, higher-reward targets. 

How to Command Premium Multiples 

• Showcase Scalable, Defensible IP: Buyers pay more for platforms with proprietary technology, recurring revenues, and clear competitive moats 

• Demonstrate Profitability & Growth: Companies that have shifted from “growth at all costs” to sustainable, margin-focused growth attract more strategic and PE interest. Companies with solid profitability-such as strong EBITDA and gross margins signal operational efficiency and the ability to turn revenue into real earnin 

• Invest in Talent & Leadership: Strong management teams and a culture of innovation are key differentiators in the eyes of global buyers 

• Prepare for Cross-Border Integration: Firms that can demonstrate readiness for regional or global expansion—through compliance, localization, and operational maturity—are more likely to attract international acquirers 

TH Global Capital specializes in advising Southeast Asian tech and consulting companies on strategic M&A transactions, capital raising, and growth initiatives. We collaborate closely with founders and management teams to develop tailored transaction strategies, optimize deal structures, and connect with global investors and strategic partners 

If you’re considering your next strategic move in Southeast Asia’s dynamic tech and services market, let’s connect. Our deep industry expertise and extensive network ensure you are well-positioned to capitalize on emerging opportunities and achieve your growth objectives. 

1 Source: Pitchbook