IT Services
M&A sector report Q4 2025
© atares GmbH
1
Dear readers,
We are delighted to present our M&A report on the DACH IT Services market. In doing so, we place particular emphasis on the landscape of system integrators and investors.
The report examines the development of the IT Services market and M&A activities from 2020 to October 2025. It is based on internal analysis and research, as well as our many years of expertise in this sector.
Due to a significant increase in demand for various IT Services, the IT Service provider market in the DACH region has developed rapidly during this period.
However, the shortage of skilled workers and new customer requirements are inhibiting factors in this regard. At the same time, increasing market consolidation by strategic and financial investors is leading to a rise in M&A activities.
We aim to provide valuable insights and findings to help you, as a managing director, shareholder, or investor, pursue sound and sustainable growth strategies for your company.
This report is a useful resource for decision-makers, whether they need guidance on valuation issues or want to assess the competition in the context of acquisition considerations.
Sincerely,
Your atares IT Services Team
© atares GmbH
https://www.atares.team
2
About atares
Business drivers
IT Services market
Valuations
Contact
© atares GmbH
3
Our IT Service team
Authentic. Passionate. Trendsetting.
Jan Pörschmann
Managing Partner
Over 25 years of global leadership experience. Chairman of the German M&A Association with comprehensive expertise in Travel Tech, MarTech, Supply Chain Tech, and HR-Tech.
T +49 89 38888-111
M +49 173 513 6001
Florian Liepert
Partner
20 years of experience from numerous complex M&A transactions across diverse industries. Expert in the IT landscape with a focus on IT Services and Supply Chain Tech.
T +49 89 38888-112
M +49 172 880 2352
Pascal Kopp
Business Development
20+ years of entrepreneurial and IT/SaaS leadership experience.
Proven track record of successful ventures, exits, and strong DACH network.
T +49 89 38888-143
M +49 152 292 679 6780
© atares GmbH
https://www.atares.team
4
IT Services references
Selected IT Services transactions.
© atares GmbH
https://www.atares.team
5
IT Services case study 2025 (1/3)
Successful sale of FLEXiCODE GmbH.
The Background
Heterogeneous stakeholder interests
The shareholders pursued different objectives regarding the scope of the sale (complete sale vs. re-participation) and the transaction terms. This required sensitive and effective coordination.
International jurisdiction
The Swiss subsidiary required comprehensive cross-border expertise and close coordination among the involved parties to optimally consider legal and tax aspects.
Limited buyer pool
The exclusion of direct competitors as potential buyers reduced the number of potential interested parties, thus posing a challenge.
© atares GmbH
https://www.atares.team
6
IT Services case study 2025 (2/3)
The added value.
Strategic positioning
Detailed analysis and highlighting of unique selling points and growth potentials to specifically address strategic buyers as well as financial investors. This led to strong investor interest and a solid basis for valuation.
Competitive process
Execution of a structured bidding process. This created an excellent negotiating position and maximized company value through competition.
Negotiating strength
Successful optimization of the Equity Bridge to maximize the payout amount at closing - the amount of the Equity Bridge alone exceeded atares' success fee.
Sound financial analysis
Convincing presentation of the adjusted EBITDA and creation of a sound EBITDA forecast based on realistic growth drivers. This provided investors with a clear picture of profitability and growth potential.
Professional sales documentation
Creation of comprehensive and convincing documents focusing on the company's strengths. This accelerated due diligence and enabled well-founded offers.
© atares GmbH
https://www.atares.team
7
IT Services case study 2025 (3/3)
The result.
Excellent transaction outcome
The transaction achieved a very attractive valuation reflecting the company’s strong market position and growth prospects.
Seller-oriented structure
The agreed structure met the sellers’ key objectives while ensuring a smooth transition for the buyer.
Competitive process
Broad investor interest and professional preparation resulted in an efficient and value-maximizing transaction process.
The close cooperation with atares made all the difference. Florian Liepert and his team were far more than consultants – they became true partners who understood our goals and led us to success. Together, we found the right course for the company's continued growth.
Lorenz Wiederer, CEO FLEXiCODE GmbH
atares impressed me with its structured and extremely professional way of working. I was particularly impressed by their understanding of the company and the market. The result was optimal for us in all respects; we were able to gain the ideal partner for Flexicode's strategic goals and next growth steps in a remarkably swift and very efficient process.
Wilfried Gschneidinger, Ex-CEO IFS Europe
© atares GmbH
https://www.atares.team
8
About atares
Business drivers
IT Services market
Valuations
Contact
© atares GmbH
9
M&A drivers and trends in IT Services
Understanding the key forces shaping M&A activity is crucial for strategic planning.
Targeted acquisitions
Buyers actively seek specialized competence, expanded customer bases, and new geographical market access.
International expansion
Acquisitions are strategic tools for international growth, both as platforms and bolt-on integrations.
Broader seller market
Sellers are increasingly broadening their scope, attracting interest from international buyers across Europe, the UK, and the US.
PE buy-and-build
An increasing number of Private Equity-sponsored international buy-and-build strategies are observed.
Talent acquisition
Challenging recruitment markets drive acquisitions as a means to secure skilled IT professionals and teams.
Market consolidation
Many smaller services firms are acquired, finding strength and scalability within larger organizations.
Generational shifts
Founders and owners nearing retirement often look to M&A as a succession planning solution.
Recurring revenue focus
Services firms seek acquisitions that offer proprietary software solutions, support agreements, and license sales to ensure stable, recurring revenue streams.
AI impact
Artificial Intelligence presents both significant opportunities and potential threats, influencing strategic M&A decisions.
Source: atares intelligence.
© atares GmbH
https://www.atares.team
10
Key points
Primary goals for IT Service business owners.
Grow rapidly & secure the future
Find a buyer who can help your company grow even faster than you could alone.
Protect personal wealth
A sale allows you to secure profits and diversify your assets, reducing your personal financial risk.
Potential for further payout
Structure the deal so that you can benefit from the future success of the business under new ownership (e.g., earn-out or equity roll-over).
Source: atares intelligence.
© atares GmbH
11
What buyers evaluate
What buyers look for in a first impression.
Cultural compatibility
Buyers will assess whether your company's culture aligns with theirs.
Integration support
Be prepared to assist the buyer in integrating your business.
Employee retention
Buyers want clear plans for decision-making and incentives to retain key employees.
Source: atares intelligence.
© atares GmbH
12
About atares
Business drivers
IT Services market
Valuations
Contact
© atares GmbH
13
Market overview
A digital transformation era.
Annual growth
Global IT Services industry CAGR (2020-2024).
Germany revenue
IT Services industry revenue in 2025.
AI & cloud growth
Annual growth driven by emerging technologies.
Source: Statista Market Insights, atares research.
© atares GmbH
14
German IT Services market
Sales have increased by half since 2020 and will more than double by 2029.
IT Services market, Germany
Turnover in billion EUR
20..29 (AC&FC)
In recent years (2020–2024), the global IT Services industry has recorded average annual growth of 12%. This growth has been driven in particular by the increasing implementation of innovative technologies, which has led to increased demand for IT Services and positioned IT Service providers as key beneficiaries of the current digitalization trend.
The industry's revenue in Germany will amount to €72 billion in 2025. In particular, higher demand for IT compliance, AI and cloud as a result of rapid innovation have had a positive impact on revenue. Given the complexity of such projects, companies are increasingly relying on the expertise of IT Service providers to support them in planning, implementing, and maintaining their IT infrastructure.
The global IT Services industry has experienced remarkable growth, driven by increasing demand for innovative technologies. Companies are increasingly relying on IT Service providers for planning, implementing, and maintaining complex IT infrastructure, particularly in AI compliance, cloud services, and digital transformation initiatives.
Source: Statista Market Insights, atares research.
© atares GmbH
https://www.atares.team
15
Increasing number of M&A transactions
2025 is projected to reach almost all time high.
IT Services market, DACH
Number of transactions in #
18..25 (AC&FC)
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
16
Market fragmentation creates opportunities
The market remains highly fragmented with the top 8 players controlling only 18% market share.
IT Services market, worldwide
Share of top players in %
24 AC
Source: Statista Market Insights, atares research.
© atares GmbH
https://www.atares.team
17
Geographical M&A activity
Europe leads global transactions.
IT Services market, worldwide
Share of M&A transactions in %
24 AC
Source: Statista Market Insights, atares research.
© atares GmbH
https://www.atares.team
18
Financial investors
Buy-and-build focus.
Platform Acquisition
Identify strong IT Services platform.
Add-on Strategy
Acquire complementary businesses.
Scale & Exit
Build scale and achieve premium exit.
Source: atares intelligence.
© atares GmbH
https://www.atares.team
19
Most active strategic buyers (1/2)
Most active strategic buyers with acquisitions from 2020 to 2025.
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
20
Most active strategic buyers (2/2)
Most active strategic buyers with acquisitions from 2020 to 2025.
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
21
German private equity funds
German financial investors continue to dominate, pursuing a “buy-and-build” strategy.
Auctus platform
DBAG platform
DPE platform
Nord Holding platform
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
22
International private equity funds (1/2)
Several top tier investors show huge interest in the DACH region.
HIG & EQUISTONE platform
BOWMARK & Hg platform
Bregal platform
Rivean & EMERAM platform
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
23
International private equity funds (2/2)
Many financial investors pursue different strategies with different platforms.
UFENAU platform
WATERLAND platform
Triton platform
Elvaston platform
Source: PitchBook, atares research.
© atares GmbH
https://www.atares.team
24
About atares
Business drivers
IT Services market
Valuations
Contact
© atares GmbH
25
Valuation Benchmarks
German IT Services companies have achieved high valuations in the past.
13.1x
EBITDA
For German IT Services deals.
EBITDA
For global IT Services peers.
EBITDA
For regional IT Services peers.
Source: PitchBook (as of 10/16/25), Mergermarket, atares research.
© atares GmbH
26
Popular recorded german transactions show a median multiple of 13.1x EBITDA
Acquisitions of German IT Services companies with disclosed multiples.
TEV = Total Enterprise Value
Source: PitchBook, Mergermarket, atares research.
© atares GmbH
https://www.atares.team
27
Global peers
Top 10 global IT Services players trade at 12.8x EBITDA.
Source: PitchBook, as of 10/16/25.
© atares GmbH
https://www.atares.team
28
Local peers
Top 10 DACH mid-caps are priced at 7.4x EBITDA.
Source: PitchBook, as of 10/16/25.
© atares GmbH
https://www.atares.team
29
About atares
Business drivers
IT Services market
Valuations
Contact
© atares GmbH
30