IT system houses and telecommunications service providers thrive at the interface of technology and trust. M&A creates structures for the future, scaling and responsible succession.

The market for IT system houses and telecommunications is undergoing change – technologically, structurally and in terms of personnel. The need for hybrid infrastructures, cloud solutions, IT security, connectivity and digital transformation is constantly increasing – while at the same time complexity is growing, there is a severe shortage of skilled workers and consolidation pressure.

Medium-sized providers are increasingly caught between customer loyalty and scaling pressure. Often historically grown, locally anchored and technologically savvy, they nevertheless lack the resources to make the leap to new service models or standardized platform architectures. Owners are faced with the question: Do I remain organic, do I specialize – or do I strategically integrate my company into a larger structure? M&A is increasingly part of this decision.

starkpartners has been supporting medium-sized IT system houses, managed service providers, network service providers, cloud architects, telecommunications providers and IT security companies through change processes for many years – whether in the course of succession, growth or repositioning. We know the dynamics of project-oriented service models, the challenges of recurring revenues (MRR) and the importance of personal customer loyalty in the IT sector.

We understand how IT architectures are developed, managed and scaled. We speak the language of firewall concepts, SD-WAN, Microsoft 365, ERP integrations or cloud migration – and at the same time also the language of lifetime achievement, workforce and responsibility. Our strength lies in the combination of technological understanding and strategic clarity – not in buzzwords, but in entrepreneurial thinking.

The M&A market for IT system houses and telecommunications providers is highly active. Strategic buyers – from supra-regional system houses to telco groups and software companies – are specifically looking for regionally anchored service providers with technological focus, customer loyalty and service competence. Private equity investors are also focusing on buy-and-build strategies to bundle fragmentation and drive standardization.

Companies with managed services offerings, infrastructure expertise, IT security focus or specialization in industry solutions (e.g. healthcare, industry, public sector) are particularly in demand. Anyone who is able to combine IT projects with service contracts and scale them independently is clearly positioning themselves in the market. M&A is becoming the bridge between owner-managed proximity and entrepreneurial development.


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Typical target companies in the IT/TK M&A context

Attractive target companies are typically IT system houses with 20 to 200 employees, a clear regional presence, full-service competence and a stable portfolio of existing customers. They offer project business and managed services, have a qualified technical staff, partner certifications (e.g. Microsoft Gold, Sophos, Fortinet, Cisco) and structured processes for support, monitoring and change management.

On the telecommunications side, providers with their own network infrastructure, regional market position, voice-over-IP solutions, site networking and modular tariff models score points. Companies with hybrid business models (TC + IT), recurring revenues, SLA structures, as well as their own software development or hosting expertise are particularly interesting. High customer loyalty, low churn and system-relevant services also increase M&A relevance.

Valuation dynamics & market logic: Recurring revenues count

The valuation of IT and telecommunications companies is increasingly based on the scalability and predictability of revenues. The decisive factor is the proportion of recurring revenues from managed services, licenses, telecommunications contracts or cloud subscriptions. Customer structure, contract terms, certification level, degree of automation and employee retention play a central role.

Value drivers are proprietary tools, industry solutions, platform integration or the ability to systematically standardize processes. Risks arise primarily from project dependency, concentration on individual customers, documentation gaps or the departure of key technical minds. Anyone who combines stable service structures with entrepreneurial vision is rated above average – both by strategic buyers and by financial investor-driven platforms.

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