The IT Services Industry in Spain
by CREA Inversión
IT Services and Consulting in Spain is a consolidated industry with several companies existing for 25+ years.
However, its growth and size has significantly increased recently with the continued momentum and push for digitalization, the consolidation of cloud/hybrid environments and the need for outsourcing derived from the lack of critical mass to develop in-house solutions with sufficient IT capabilities. The sector’s trend towards consolidation has accelerated in the last years, after a larger number of closed deals in 2022/23, despite overall market and economic uncertainty and rising interest rates.
This consolidation process has been supported, among others, by:
The entry of private equity in the sector, with relevant investments Unikal (Ufenau), Ayesa (A&M), Vass (One Equity Partners) or Babel (Aurica Capital)
The listing in BME Growth of players interested in buy and build strategies (Izertis, Sngular, Knowmad mood, 480)
The interest from large domestic groups interested in expanding their capabilities (Seidor, Minsait, Telefónica Tech)
The strong interest from international groups in entering / expanding their presence in the Spanish market (Devoteam, SESA Group or Thales, to name a few)
Given the existing fragmentation, the increasing specialization, and the complexity of retaining and attracting qualified personnel, the consolidation process should continue solidly in the coming years as the sector expands and reaches its full potential.
GCG member firm
CREA InversiónMadrid, Spain
David López da LamaContact David
José VillaverdeContact José
In addition to the access and positioning in one of the TOP EU markets, European IT players can assess nearshoring opportunities from southern Europe. Spain is highly regarded for its qualified personnel and competitive employment costs, making the country an optimal operations center for international players.
International players can also be interested in Iberia players given their connection and cultural links with LATAM, serving as gateway to expand in this region.
Technology sector is one of Spain's fastest-growing industries:
Digitalization is critical to change the Country's production model.
Organizations across various sectors are embracing digital transformation to enhance operational efficiency, improve customer experience and gain a competitive advantage.
The technology sector in Spain is expected to grow due to the increasing adoption of digital technologies across industries together with an increased investment in the IT sector by the Spanish Public Administrations.
The sectoral trend towards consolidation in Spain has accelerated in recent years. Last year 49 corporate transactions were closed, a record number that exceeds previous years, despite the macro uncertainty and rate hikes over the last year.
Of the nearly fifty corporate transactions, 33 of them (67%) involved Spanish companies as buyers, compared to 16 with international investors (33%).
Large foreign players have also shown their interest in Spanish technology companies.
By size, throughout 2023, operations with a volume of less than 10 million euros predominated.
Among the largest companies with the greatest investment interest are Seidor, Unikal (backed by Ufenau), Izertis, Devoteam and Nunsys.
On the other hand, among the elements that have catapulted this consolidation process is the strong entry of venture capital into the Spanish technology sector, with significant investments in companies such as Plexus Tech (Portobello Capital), Unikal (Ufenau), Ayesa (A&M), Vass (One Equity Partners) and Babel (Aurica Capital), as well as the interest of large national groups in expanding their capacities (Seidor, Minsait, Telefónica Tech).
The top 5 buyers’ groups in Spain per number of transactions during the period January 2021-March 2024 are:
#1 Seidor with 11 transactions
#2 Unikal (backed by Ufenau) with 9 transactions
#3 Izertis with 7 transactions
#4 Devoteam with 3 transactions
#5 Nunsys with 3 transactions
Some of the latest and reference deals in the industry in Spain have been:
Portobello Capital acquired minority stake in Plexus Tech (revenue €185,5m). (2024)
Accenture acquired 100% of Innotec Security (revenue €26.6m). (2023)
Seidor acquired 100% Gesein, IT service provider specialized in public sector (revenue €20m) (2024)
Advised Hiberus on the acquisition of Devoteam subsidiary in Mexico (Devomex).
Hiberus is a leading technology consulting firm in Spain, offering business consulting, technology development and outsourcing services.
Advised Wise Security Global in the sale of 51% to Var Group (part of Italian listed Sesa Group).
Wise is a leading cybersecurity player, having also developed proprietary solutions in digital evidence blockchain-enabled.
