CHICAGO – Seven EMS transactions were recorded in the fourth quarter of 2024, reflecting a decrease from eight in 2023's fourth quarter and twelve in the fourth quarter of 2022, Lincoln International reported in its latest EMS Quarterly Review.

Of the transactions that took place, vertical and horizontal convergence accounted for four transactions, tying the highest number of such transactions in the past four years. EMS consolidations made up two transactions, marking a decline relative to the fourth-quarter results from each of the preceding four years. Private equity investments comprised one transaction, while diversification into EMS, EMS divestitures and original equipment manufacturer divestitures did not contribute to Q4 2024 transaction activity.

By geography, the US accounted for five transactions, Europe recorded two transactions, and Asia, cross-border (High/High) and cross-border (High/Low) did not report any closed transactions during the quarter. Large-tier EMS providers led activity with four transactions, mid-tier EMS providers completed one transaction, while small-tier EMS providers contributed two transactions.

While M&A activity in the quarter saw a slight decline compared to the prior year, there continues to be an underlying trend of consolidation and movement towards high-value markets, the firm said in its report.

"As the EMS industry enters 2025, it is poised to build on foundational growth trends such as enhanced operational capabilities, geographic diversity and growing demand across key end markets," the report said. "With sustained investment in innovation and advanced technologies, the sector remains well-positioned to capture new growth opportunities and create long-term value."

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