The German and European M&A market has continued its stable trend of the first quarter despite the existing uncertainties caused by the current macroeconomic and geopolitical situation. Both the transaction volume and the valuation multiples in Q2 2024 confirm the positive stabilisation of the financial market. In addition, the evaluation of the M&A Climate Monitor of the Bundesverband Mergers & Acquisitions indicates a continued cautiously positive market assessment for the coming months. According to the survey, 34% of the companies surveyed are optimistic about the short future. In the TMT market, increasing IT digitalisation and the emerging AI wave could facilitate increased inorganic growth through transactions. Technology, IT and software companies are increasingly exposed to disruptive innovations in the fields of AI, cyber and cloud and must address this issue by investing in suitable takeovers and mergers or considering the sale of non-core business areas.

This edition of our SektorReport TMT focuses on the IT-services sector. The sector is highly fragmented with many small and medium-sized companies, which makes it particularly attractive to private equity investors considering buy & build platforms. In addition to these current M&A drivers and selected platforms, we also illustrate the current deal activity and valuation range in the IT-services sector. Meanwhile, we investigate the acquisition of Relatech S.p.A. by private equity investor Bregal Unternehmerkapital in the deal report chapter. This second platform investment by the new fund Bregal Unternehmerkapital IV is intended to form the market leader for Italy's digital transformation through further add-on acquisitions.

Source: Mergermarket, BM&A-Klima-Monitor Q2 2024

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