Benelux IT M&A market | Q4 boom signals strong momentum heading into 2025
The Benelux IT M&A market concluded 2024 on a high note, with deal activity accelerating in the final quarter. More transactions were recorded in Q4 than in the preceding three quarters, which had been relatively subdued. Participants anticipate that this momentum will carry into 2025 under stable market conditions.
This growth in dealmaking aligns with a broader recovery in the European market, which saw an increase in deal value and rise in deal count, making 2024 the third-best year for dealmaking after 2021 and 2022. Despite macroeconomic challenges, including political instability in Germany and France, a regime change in the UK, and ongoing geopolitical tensions, and AI & ML emerged as a key investment criteria.
Market performance and key trends
CFI tracked 149 IT transactions in the Benelux M&A market during Q4 2024, a notable increase from the 127 deals recorded in Q3 and the 122 in Q2. The first quarter saw 142 transactions, bringing the total for 2024 to 540 deals, surpassing the 524 transactions of 2023 but still falling short of the 600+ deals recorded in 2021 (667) and 2022 (658).
Private equity played a crucial role in this resurgence, particularly through leveraged buyouts (LBOs) and add-on acquisitions, accounting for 50% of all transactions in 2024, while venture capital (VC) accounted for 17% of all transactions. Although strong, these trends come with longer holding periods for PE assets, which increased from a median of 5.2 years in 2021 to 6.1 years in 2024, reflecting a more patient capital deployment strategy among investors.
A strengthening M&A landscape
Despite challenges such as higher borrowing costs and geopolitical uncertainty, M&A activity within the Benelux IT sector remains strong. The market continues to attract significant foreign interest, particularly from UK and US investors. These international private equity firms have been more aggressive than their local counterparts in pursuing IT acquisitions, driven by large capital reserves and intense competition for high-quality assets.
The Benelux IT market remains particularly attractive due to several factors, including:
- High levels of cloud adoption
- Well-educated, technically skilled workforce
- Strong English proficiency
- Favourable business environment for software and IT service companies
Shifts in market dynamics: From seller’s to buyer’s Market
The M&A landscape in 2024 reflected a shift from a seller’s market in 2021–2022 to a buyer’s market, where valuations have normalised and investors are prioritising add-on acquisitions to strengthen platform investments.
Several high-profile transactions in Q4 underscored this trend. Norwegian enterprise software giant Visma acquired TimeChimp, an Amsterdam-based provider of time-tracking and project management software. Investor Riverdam expanded its portfolio of managed service providers through its umbrella company Smizer, acquiring Yorna, Doorn & Van der Haar, and IT Local.
Software investment firm Main Capital executed multiple deals, both domestically and internationally, including acquisitions of TMA and Inconto (Benelux), Presentation Solutions (UK), Zonith (Denmark), Qnister (Sweden), and ERP Novum, Procilon, and Perbility (Germany). The latter deal was an exit transaction with Amsterdam-based investment fund Rivean Capital as the buyer.
Total Specific Solutions (TSS) was another active player, acquiring seven companies across Europe, including Star IMT (Germany), A6CMO and Creative IT (France), AX Innovation (UK), Buypass (Norway), and ICR Evolution and TrueIT Systems (Spain). In total, TSS completed 18 acquisitions in 2024, two more than in 2023. Notably, the firm has already closed 10 deals within the first two months of 2025.
Major transactions: Valcon, Vitec, and strategic consolidation
Among the year’s largest deals, Rivean Capital acquired a majority stake in consulting firm Valcon from investment firm Waterland. Valcon had previously integrated First Consulting, Viqtor Davis, P2 Consulting, and Scandinavian-based Valcon under a single umbrella. With Rivean’s backing, the firm aims to accelerate its expansion across Europe, with further acquisitions on the horizon.
Swedish software company Vitec also made strategic moves, acquiring Olyslager, a 75-year-old data provider serving the lubricants and fluids industry. Another acquisition by Vitec was Figlo, a Benelux-based fintech company specialising in financial planning software for consumers.
Prominent cross-border deals
Other high-profile transactions in Q4 included:
- VanderLande’s acquisition of Siemens Logistics
- Penta Infra’s investment by pension fund administrator PGGM
- Anylinq’s acquisition by French infrastructure specialist Spie
- Schuberg Philis’ acquisition by UK-based tech investor Bridgepoint
Schuberg Philis’ acquisition was particularly noteworthy, given the company’s longstanding reputation as a proudly independent Dutch IT services provider. The deal is expected to support the company’s expansion into Scandinavia, the UK, Germany, Switzerland, and Austria, leveraging Bridgepoint’s extensive network and industry expertise.
Outlook for 2025
With interest rate cuts expected, borrowing costs should decrease, further boosting M&A activity. Additionally, a backlog of companies seeking exits is likely to be released in 2025, improving liquidity and deal flow.
The broader private equity market is also poised for continued expansion, with institutional investors increasingly allocating capital to PE as an asset class. However, challenges remain—particularly for first-time and smaller fund managers, who faced a decade-low year for fundraising in 2024.
For the Benelux IT sector, 2025 is set to bring continued consolidation, with software, cloud, and AI-driven businesses remaining key investment targets. Foreign investors, particularly from the US and UK, are expected to remain highly active, competing for high-value IT assets in a market that remains one of Europe’s most attractive for technology investments.
