The IT Services Industry in Croatia
by Marcinkovic & Partners
The Croatian IT sector is growing and has proved to be less vulnerable to the negative impact of the crisis in 2020 and 2021.
There are some 6,500 IT companies in Croatia with about 40,000 employees and their exports have increased by 6.3%.
Croatia ranks 43rd among 63 countries on this year's digital competitiveness index of the World Competitiveness Center, and 21st among the 27 EU member states, and is moving up.
According to the Digital Croatia Strategy 2032, it is aimed at developing an innovative digital economy and public administration and increasing the availability and use of fiber-optic and 5G networks and the digital competences of citizens.
Also, according to the same strategy, The share of the ICT sector in GDP is expected to grow to 13-15% by 2032, compared with 4.5% and current level slightly below than 7%.
Key areas for further growth of IT companies in Croatia include FinTech, LowTech, AI, Big Data, and gaming, which bring both services and products such as applications, video games, and other tangible and commercial types. This would shift Croatian IT companies from their current horizontal business support towards addressing the new areas.
The 2020-2022 period marked an expansion in the IT sector in Croatia and the most turbulent M&A period. During 2023 and Q1 2024, around 50 transactions were realized in Croatia, with only a few involving the IT sector. Among them, we can highlight:
European Bank for Reconstruction & Development (EBRD) acquired 28.3% of M Plus Croatia d.o.o, the Croatia-based provider of business process technology outsourcing services for the consideration of €60m.
Telelink Business Services Group acquired Sedam IT doo, the Croatia-based provider of software, IT, and communication solutions and services for the consideration of €9m.
The Croatian government acquired the remaining 49% stake in information technology company Apis IT from the Zagreb town authorities.
Deal value of €37.8m ($41m).
Marčinković & partners were engaged by the Ministry of Finance and the City of Zagreb to value the City of Zagreb share.
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GCG member firm
Marcinkovic & PartnersZagreb, Croatia
Mato MarcinkovicContact Mato
Marko DabicContact Marko
