In the era of digitalisation, the German technology sector is particularly significant. The sector not only represents an important branch of the economy with more than EUR 230 b in annual turnover, one million jobs and almost 7% of total economic output. In the context of digitalisation, the sector is above all a central driver of innovation that has a significant impact on other sectors.
Dr. Nicholas Hanser
The German technology sector finds itself in an ambivalent market environment. The segments of the technology sector are increasingly developing in different directions. While software and services are fundamental growth drivers for the entire sector, sales in the hardware segment are increasingly stagnating.
Analytics and Artificial Intelligence
The interplay of connectivity and new network infrastructures is generating huge, additional volumes of data. Analytics and AI help to use the data effectively.
Our Sector Transactions
Habyt GmbH x Homefully GmbH
Number of M&A transactions - DACH region, 2021 (as of August)
SAP SE X Signavio GmbH (2021)
AppLovin Corporation X adjust GmbH (2021)
The Internet of Things and the introduction of the mobile infrastructure 5G enable forward-looking business models such as autonomous driving, telemedicine and the control of networked machines. As early as 2020, around 750 m network-enabled devices will be in operation in Germany. In addition, XaaS (as-a-service) business models are a rapidly growing field. Cloud-based models open up new sources of revenue while reducing costs.
The technology sector in Germany plays an immensely important role, especially in terms of its innovative strength. Many other industries benefit from the technological achievements and business models that emerge from the sector. The software segment in particular has huge growth potential. But the high-margin special hardware segment also has extremely attractive prospects. The German technology sector is an important success factor for overall economic development.
Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.
"We strongly observe that established companies are increasingly buying up small technology start-ups, as they fear missing out on the latest technology trends. Accordingly, many acquisitions in the market are taking place for strategic reasons, which also accounts for the high valuations."
Partner | Head of Technology
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