Technology Report – M&A Insights H1 2025

Driven by digital transformation and the possibilities with artificial intelligence, new opportunities for transactions will also arise in the information technology sector. This is especially true in the Swiss market, which is characterized by many privately held companies and is attracting interest from foreign investors.

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The IFBC Technology Report has evaluated, analyzed, and commented on M&A activities in the first half of 2025 and the 63 Swiss IT deals.

Key Takeaways

Software companies are coming into focus – Financial investors are withdrawing from IT services and focusing primarily on scalable software models.
Strategists have the advantage – unlike in the EU market, strategic buyers are still more important than financial investors for Swiss software companies.
Profit beats growth – strong margins are more important than revenue growth for an attractive valuation in the IT sector – pressure on companies is increasing.
Scaling drives company value – size is a clear driver of high valuations for software companies, far more relevant than for IT services models.
Strong international demand – three out of four buyers of Swiss IT companies come from abroad – demand remains high.

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The five megatrends of Cloud, SaaS, Data Analytics, Cybersecurity, and Artificial Intelligence are considered strategic growth drivers and are therefore also shaping the M&A market. Software and IT services providers are strengthening their position in a targeted manner through acquisitions in these areas in order to expand their expertise and tap into new client segments.

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Fabian Forrer, CFA, Partner and Sector Lead Technology at IFBC: “The environment has become more challenging for sales of traditional IT services companies, which makes a professional search for the right buyer all the more important.”

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The Software and IT services market offers numerous and diverse opportunities – but at the same time, there are just as many challenges to overcome.

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The Swiss IT industry is currently dominated by strategic buyers when it comes to M&A transactions. In addition, there are significantly more transactions in the Software segment than in IT services. Zurich is the Swiss hotspot, followed by the tax-friendly cantons of Zug and Lucerne.

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