The digitalisation of public administration in the DACH region is gaining momentum – driven not by voluntary innovation, but by a structural triple pressure of regulatory mandates, demographic change and years of underinvestment in public IT infrastructure.
OZG 2.0, the KRITIS Framework Act and the EU Interoperability Act establish a binding implementation framework that makes demand for GovTech solutions plannable for years to come.
For the M&A market, this creates a remarkable constellation: a highly fragmented landscape of mid-market specialists is meeting growing interest from institutional investors and strategic acquirers – simultaneously. The structural qualities of the segment justify this interest: high customer retention rates, recurring revenues and a demand base that is largely independent of the broader economic cycle. Read more on page 3 of the SektorReport TMT Q2 2026.
How concretely this plays out is shown by this quarter's featured transaction: with the acquisition of travel-expense specialist SMS System-Management Stiewi, the Main Capital-backed platform MACH completed its sixth add-on since 2020 – a textbook example of the buy-and-build dynamic that is currently reshaping the DACH GovTech market. Read more on page 8 of the SektorReport TMT Q2 2026.
In this SektorReport TMT Q2 2026, we analyse the market structure of the DACH GovTech ecosystem, identify the most attractive software verticals and examine the M&A drivers for both Private Equity and strategic buyers.
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