Software & TMT

The software, IT and technology sector is one of the most sought-after industries in the German M&A market. Digitalisation pressure, NIS2 regulation and expanding AI infrastructure are driving sustained consolidation — while simultaneously creating structural demand for specialised providers. Buyers are no longer just looking for revenue, but for scalable platforms with customer retention. Three buyer types are currently most active: strategic buyers — larger IT groups seeking access to niche technology or regional customer bases, willing to pay strategic premiums; private equity with buy-and-build mandates — building platforms from specialised mid-market companies, seeking add-ons with stable recurring revenues; and international buyers — North American and European corporates accessing the German market through targeted acquisitions. Valuations show a growing divergence: companies with high recurring revenue shares, low owner-dependency and demonstrable customer loyalty achieve EBITDA multiples of 7x to 10x. Less differentiated providers fall significantly short. What your business is actually worth and which buyer type is realistic for you — that cannot be read from multiples alone.

The M&A market for software and IT companies in the DACH region remains active: in 2025, over 590 transactions were recorded in the areas of data processing, software and IT services. Strategic buyers are actively seeking cloud expertise, cybersecurity capabilities and AI-enabled platforms. Private equity investors are simultaneously building out buy-and-build strategies — particularly in the mid-market segment. Valuation multiples show a growing divergence: companies with recurring revenues, stable margins and scalable business models continue to achieve multiples in the upper range — while less differentiated providers face increasing pressure. Which buyers are currently relevant for your business and what they are actually paying — we are happy to discuss this in a confidential first conversation.