Acquisition IT consultancy company in Germany

• The acquired company is an IT consultancy located in Germany
• The acquired company has revenues of approx. 5 million euros
• The buyer is a German IT consultancy and solutions group
• CFIE business acquisition input: The CFIE M&A team member helped in sourcing the target company resulting in achieving a valuable addition to the acquirer’s group of companies. The buyer is aggressively looking for growth of market share and expanding the group’s competencies in the DACH Region

The acquired company focuses on consulting in company controlling solutions in the DACH region. Its portfolio encompasses technical and in-depth consulting in business analytics, information management, and performance management solutions. Partnering with leading software suppliers, the company offers solutions based on IBM, SAP, Oracle, Microsoft, and Informatica software.

Strategy midsized German IT consultancy and solutions group

The buyer is a midsized German group with revenues of approximately 60 million euros that are doing acquisitions on a regular basis. Its aim is to establish a profitable high-end consultancy and solutions group in the DACH region. This aim is being pursued through organic growth of the group of companies as well as through well-aimed acquisitions. In doing this, the company is taking advantage of some basic underlying change factors in the fragmented central European IT market:

• Increasing consolidation pressure due to consolidation tendencies of the customers
• Increased pressure for professionalization in order to be able to compete with larger competitors
• The necessity to have a broad knowledge base in order to be able to quote for larger projects
• Pressure on achievable daily rates and margins due to near and offshore suppliers

Group companies retain their independence to a very large extent but are in a position to benefit from the group’s strengths, e.g., in recruiting, financing, access to other experts, increased offerings to customers, best practice approaches, etc.

The tool-making company was faced with many requests from its customers to offer services and products beyond its current scope. Many customers demanded both tools and products. Also, its current facilities would not allow for very much growth. Therefore, the company was looking for an injection molding company to complement its current activities that would also provide for additional space in order to be able to expand and reduce costs.

The CFIE M&A team helped the buyer mainly in deal sourcing for this acquisition. The team scouted the target company, put forward the acquirer’s strategy and benefits of joining the acquirer’s group of companies, and initiated talks and negotiations between the target company and the acquirer.

Frits Verheesen helped in approaching the right target and brought them together. Both companies realized the combination would make them stronger.

• Both companies have a strong position in their respective segments of the IT consultancy industry
• The target company has a strong focus on performance management solutions. Together with the sales activities and customer scope of the acquirer, the target company is in a better position to achieve its growth targets and potential than on a stand-alone basis.
• The German-based buyer can invest further in the development of the target company. Also, its group of companies can offer additional services to their customers.
• All group companies benefit from the best practice solutions generated at the individual companies.

Feel free to contact us for further details about this acquisition in Germany. If you are looking for acquisitions or business sales of IT companies in other countries than Germany, do contact us. We know other available IT targets as well as IT investors in Europe or would be able to find the ones that suit you.