Market Update: IT Services & Software in Western Europe Q4 2022
During the last quarter of 2022, deal volume in the IT Services & Software sector decreased by 24.8% becoming the least active quarter of the year. Although inflation in Western Europe decreased from 10.0% to 9.2% during the last 2 months of the year as a result of four interest rate hikes made by the European Central Bank (ECB), the high lending costs, Eastern European turmoil, and looming 2023 recession have led to more conservative inorganic growth plans during Q4 2022.
Despite these unique macroeconomic conditions, 2022 became the last decade’s second most active M&A year slightly under 2021. This is was majorly due to European’s bold increase in M&A spending in North America ($78b in 2022) and the accelerated rate of capital raised by European Private Equity Groups. The U.K. and Sweden accounted for most of the top 10 biggest European closes in 2022 with Nordic Capital XI leading the charts ($9b).
7MA has completed numerous M&A transactions for companies with outsourced operations and delivery centers in Western Europe and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact Kristina Sergueeva or Ilia Ulianchuk if you would like to learn more about IT Services & Software across Western Europe.