CHICAGO – Three EMS transactions were recorded in the second quarter, down from the five recorded in 2023's second quarter, according to Lincoln International's latest EMS Quarterly Review.

EMS consolidations accounted for one of the transactions in the quarter, while vertical/horizontal convergence accounted for the other two recorded transactions, representing the highest number of vertical/horizontal transactions in the previous four years.

By geography, Europe had one transaction and US/Canada had one transaction, with the other recorded transaction being cross-border. Small-tier EMS providers accounted for one of the transactions, one transaction was categorized as a mid-tier EMS deal, and the other transaction was categorized as a large-tier EMS deal.

While down for the quarter, Lincoln's report finds that mergers and acquisitions activity is expected to rise in the second half of the year, especially with middle-market EMS companies, driven by demand resiliency and broader market improvement. With the EMS sector set to expand significantly, more M&A activity is expected for consolidating key capabilities and introducing additional capital to realize near- and long-term growth.