M&A Update Technology Sector | Q2 2024

M&A market developments and valuation environment in the second quarter

The current development in the first half of 2024 signals a significantly positive trend - M&A activity in the European and German tech market has intensified noticeably compared to the second half of 2023.

The second quarter steadily continues the positive recovery trend compared to the second half of 2023, which we were already able to document in the months of January - March. In direct comparison, 33% more transactions took place in H1 2024 with 1,095 deals than in H2 2023 with 826 deals. Strategic investors remain the most active buyers in the European tech market in Q2 2024 (>85%).

Nevertheless, both strategic buyers and financial investors have a strong focus on international M&A strategies (>45%). The recovery in individual tech subsectors predicted at the end of the first quarter can be confirmed both in terms of transaction activity and valuation levels, which have sustainably increased in almost all subsectors.

In our M&A update, we analyze the current valuation environment of the tech sector, focusing on the following developments in particular:

- The European M&A activity as well as background information on selected transactions

- The current valuation level in Europe and Germany

- Various sub-segments in the Tech stock market

Additionally, we showcase one of our recent tech deals in Germany: the sale of Doozer Real Estate Systems GmbH, a German provider of real estate management software for vacant apartment renovations, to the Dutch company Zig Beheer B.V., a software provider held by Main Capital Partners offering a wide range of software solutions in the real estate industry .

We hope you enjoy reading the report and look forward to exchanging ideas with you soon.