CHICAGO -- There were 26 EMS transactions recorded in 2016, down one from 2015, according to a new report from Lincoln International.

Consolidations led the way, with nine shops closing last year, three fewer than in 2015. There were also eight vertical/horizontal mergers, and five EMS divestitures, the mergers and acquisitions advisory firm said. Private equity investments accounted for two transactions in 2016, and one transaction was categorized as diversification into EMS and one transaction categorized as an OEM divestiture.

Ten of the deals took place in North America, and eight in Europe.

The firm tracks M&A activity in the EMS sector each year, although many deals conducted between private entities fly under the radar and are not publicly known.

Half the deals completed in 2016 involved small tier EMS providers, while mid tier providers accounted for nine acquisitions.