Discover Key Insights: IMAP Germany’s IT-Services Sector Report 2025

Key Highlights of the Report:

1. Investment Activity Trends:
Investment activity in the IT-services sector has seen a decline, with only 10 reported deals in the last year, largely driven by add-on acquisitions. Despite this, private equity (PE) exits such as the sale of Diva-e to Conclusion Group, Mindcurv to Accenture, and Fernao to VINCI highlight continued interest in mature platforms.

• Strategic buyers are playing a significant role, especially in the lower-midmarket IT services sector, by leveraging their ability to evaluate opportunities during uncertain economic periods
• We anticipate additional major exits in the near future

2. Valuation Trends:
Valuations in the IT-services M&A space have remained stable over the last year despite market fluctuations. Companies with scarcity value continue to attract premium valuations, driven by rising interest from foreign investors entering the German market.

3. Stock Market Performance:
The performance of European IT-services stocks was mixed in 2024, with the sector declining by approximately 17% LTM. However, EV/EBITDA multiples stabilized at ~7x.

• Notable growth occurred in System Integration (SI) and Consulting in Asia and North America, while European counterparts faced headwinds.

Additional Insights:

• DACH Region Transactions: Since 2020, there have been 64 transactions in the DACH IT-services sector, with activity peaking in 2021.
• Private Equity Interest: 33% of investors have portfolios with multiple IT-services acquisitions. Leading private equity players such as Prom12, Ufenau, AUCTUS, Deutsche Beteiligungs AG, and NORD Holding remain highly active.
• Entrepreneur-Investor Partnerships: Collaborations with financial investors are increasing as entrepreneurs look to drive growth and navigate challenges such as sustainable sales & marketing structures, cloud transformation, and recruiting.

IT Services Market Overview:
Demand for digital transformation, cloud solutions, AI technologies, and cybersecurity continues to shape the IT-services market and its long-term potential. Our regular conversations with entrepreneurs reveal optimism for 2025, alongside increasing demand for IT project implementation.

This report is essential reading for investors, company owners, and stakeholders navigating the evolving IT-Services sector.

Why Download the Report?

Gain access to:

• A detailed overview of M&A trends and valuation insights.
• Key private equity activity and investment dynamics in the DACH region.
• Actionable strategies for navigating opportunities in the IT-services sector.

Download the IMAP Germany IT-Services Sector Report 2025 today and stay ahead in a competitive and rapidly evolving market.