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Study of M&A deals in the TECH/IT sector in France 2022

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Study of M&A deals in the TECH/IT sector in France 2022

Study of Mergers and Acquisitions in the IT segment - Tech France 2022

TwinL Investment Banking presents its annual report on majority acquisitions in the IT sector - TECH Française. Its objective is to provide the reader with analysis keys to better understand market trends.

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01 - 2022 key figures

163 transactions carried out
• 84 Software Publishers • 21 IT/IT Consulting • 19 Managed Services • 14 Distribution and other IT services • 13 Integrator • 12 Telecom Operators
Cumulative turnover of €3.6 billion
• 360 M Software Editors • 500M IT/IT Consulting • 2,440 M Managed Services • 100M Distribution and other IT services • 120M Integrator • 80 M Telecom Operators

02 - Target typology

Number of acquisitions
Stabilization of the number of operations

In 2022, acquisitions are down compared to 2021. But this decrease in the number of transactions is to be put in perspective: 2021 had recorded strong growth following the postponement of 2020 deals due to market disruptions related to the coronavirus period. Thus, the number of acquisitions in 2022 is much higher than in 2018 and 2019 despite the economic uncertainty of the country, consolidation in this sector continues to progress.

Nombre d’acquisitions
Average turnover of Targets (€M)
A decrease in the average size of targets

In 2022, we see that the consolidation of the market continues with acquisitions of smaller targets than in the last 5 years. However, the 2022 average turnover excluded, for reasons of comparison with previous years, an exceptional transaction: the acquisition by Bain Capital of Inetum (€2.3 billion of turnover) which would bring the average to €22.8 million. This may be due to higher interest rates and the impact of acquisition prices.

CA moyen des Cibles (en M€)
Number of transactions according to the target turnover
A slowdown in large operations

In 2022, the decrease in operations compared to 2021 is particularly significant in the segment of companies >20M € which decreases by half compared to previous years.

Number of transactions according to the target turnover
Number of operations in the turnover segment > 20M€ (base 100 in 2018)

03 - Profile of purchasers

Regional distribution of operations

Paris and its region concentrate more than 51% of total operations, predominance on consulting companies: 57% and IT integrators: 67%. In 2022, the Auvergne Rhône-Alpes region (AURA) accounted for 42% of operations in the Telecom sector, compared with 30% in 2021. It thus continues its good performance in the sector.

Regional distribution of operations
Age group of transferors

The average age of transferors is 53 in 2022. This average is stable compared to previous years. In comparison to other economic sectors, 50% of the divestments in the tech world are carried out by executives under 50 years old.

Distribution of transferors by age group
Geographical origin of purchasers

5% of transactions involve North American buyers. The majority of acquisitions involve French buyers (88%). In Europe, the United Kingdom and Spain account for 2.55% and 1.3% of buyers respectively. The Indian and Japanese buyers each performed a transaction. The share of «Primo Buyers», over 5 years, in total deals in 2022 is slightly increasing (76%) compared to 2021 (70%)

Ranking of the most active buyers in 2022

04 - Focus on an operation

Mandated by the shareholders of the Sigma Mediterranean Group (Sigma Méditerranée and Eponia) to assist them in the research and negotiation of a backing with an industrial partner, the VALUE IT Group was selected at the end of the process managed by TwinL Investment Banking in less than 9 months.

Value IT thus reinforces its external growth strategy and completes its service offer and its geographical networking policy since Sigma Méditerranée shines in Occitania through two branches located in Lézignan and Carcassonne. The company supports its customers in their digital transformation project, relying in particular on the convergence of the IT and telecom businesses.

The Value IT group confirms its position as a key player and expert in IT services in the AURA, IDF, and Occitanie regions with a consolidated turnover of €14m and now 65 employees.

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