The German IT and industrial sector is changing rapidly. Two trends dominate: investments by private equity funds and strategic spin-offs from large corporations.

KKR and the rush for IT services

Private equity has its eye on the German IT industry – especially IT services with recurring revenues. KKR wants to take over Datagroup completely and delist it from the stock exchange in order to be able to act more freely strategically.

The market is attractive: it is not very concentrated and has high growth rates. This is ideal for PE funds. At the same time, time is pressing – US$1.2 trillion in “dry powder” is waiting to be invested worldwide. Fund managers need to invest, realize profits, and secure new capital commitments.

Thyssenkrupp focuses on independence with TKMS

Corporations are also taking action: Thyssenkrupp is spinning off its marine division TKMS. The goal: greater focus, better control, new partnerships. The government is even considering an investment via KfW – a sign of the growing importance of security and governance.

Growth after the deal: examples from the market

What happens after a takeover or spin-off? The answer: growth. Take TIMETOACT, for example: acquisitions such as catworkx, Trustbit, and Walldorf Consulting boosted sales from €115 million to over €360 million. In 2025, investor Equistone sold the company to H.I.G. Capital.

Other investors are also scaling up:

• Bowmark & Hg are expanding their Focus Group platform (including through Fiscozen).
• NORD Holding is growing with EWERK and the Public Cloud Group (including LNW Soft and CONUTI).
• Rivean Capital & EMERAM are strengthening init with acquisitions such as IRONFORGE and HBSN.

Spin-offs such as TKMS are also benefiting: they are gaining agility, can invest more selectively, and communicate their strategic vision more clearly.

These topics are currently of interest to investors

PE firms are paying particular attention to:

• GenAI & AIOps – generative AI as a growth driver
• Cloud cost optimization (FinOps) – efficiency counts
• Green IT & sustainability – increasingly relevant due to new EU regulations (CSRD)
• Cybersecurity – EU directives NIS 2 and DORA create new markets

Important: A transaction begins long before the sale. Companies need to prepare their finances, build a strong management team, and develop a compelling equity story.

Conclusion: Those who act now will win

Private equity and spin-offs are not marginal phenomena – they are real tools for increasing value. The wave of consolidation will continue, including in areas such as PropTech and HealthTech.

Tech entrepreneurs who position themselves early can secure decisive advantages now. We have compiled our Exit Readiness Checklist to help you prepare for the discussions and processes.