IMAP Germany IT Services Sector Report Q3 2023

We are pleased to release the IMAP IT-Services Sector Report for Q3 2023. This sector overview provides insights into the investment activities of private equity investors as well as the valuation and share price development of listed companies and specific M&A dynamics

• Our assessment of private equity investments in IT-Services companies in the DACH region indicates a sustained high level of M&A activity with 12 deals YTD across various subsectors. The report analyzes 71 investments in IT-Services companies since 2014. In general, companies have experienced strong demand in recent years. Investors are pursuing buy-and-build strategies for their platforms and have carried out a large number of transactions in the lower mid-market
• We analyzed the performance and valuation of listed IT-Services companies, by defining the subsectors System Integration & Consulting (divided by region), Marketing Services, and Digital Engineering. The subsectors show a heterogeneous LTM stock performance as of September 2023. Similarly, valuation levels vary across subsectors
• The report includes an analysis of the number of transactions and transaction volumes in the German and European (excluding German market) IT-Services market. The evaluation of transaction-based valuations in Europe in 2023 is in line with previous years