The value of private equity buyouts in Europe’s IT sector has surpassed €106 billion (about $111 billion) this year, a 10-year high, as investment in the sector is boosted by a return of multibillion-dollar mega-deals.
The last significant peak in IT investment was in 2021, when increased demand for IT services to support remote workforces during the pandemic fueled €103.1 billion of PE buyout activity.
PitchBook data shows that overall PE investment in the IT sector dipped in 2022 and 2023, falling to just over €89.5 and €86.2 billion, respectively, as inflation and rising interest rates curbed dealmaking. However, slowing inflation and recent interest-rate cuts have helped spur leveraged buyout activity.
However, this is also the third year where the deal count has fallen, reflecting a decline in small- and medium-sized deals in the sector.
Notable transactions included the €22 billion acquisition of NetCo, a Rome-based operator of fixed-line and submarine cable networks, by a consortium led by KKR on July 1, 2024. This became one of the largest PE deals in European IT history.
Another significant deal was Thoma Bravo’s acquisition of UK cybersecurity firm Darktrace for £4.3 billion in April 2024. This take-private deal offered 620 pence per share, a 20% premium over its pre-announcement closing price.
According to PitchBook’s Q3 European PE Breakdownm the median deal size for PE deals across all industries in the region is up 40% year-to-date compared to 2023, with large-cap deals in the IT and energy sectors driving the trend.
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