Selling or partnering your IT services company in France: the market has turned, buyers' appetite has not

Until recently, an IT services company of twenty to two hundred people was almost always handed on the same way: a larger peer bought the team and contracts to win a client or a skill, and the founder stayed on for a year or two. The slowdown in IT services in 2024 and 2025 upset this model: key accounts froze budgets, bench time returned, and buyers started to sort.

But sorting is not giving up. Local service groups, fund-backed buy-and-build platforms and large players keep buying, focusing on companies selling managed services, cybersecurity, cloud and data, or business software that holds its market. For the owner, the question is no longer whether there will be a buyer, but what their model is worth in the eyes of those who buy.

A €70 billion market that has changed pace

The digital sector represents €70 billion in revenue and 670,000 jobs in France according to the industry body Numeum. ¹ After several years of strong growth, the pace slowed sharply in 2024 then fell to around 2% in 2025. ^1,2 This average hides a deep divide. Software and platform publishers, €29.1 billion, still grew 8.2% in 2025, driven by the move to the cloud and price increases. ^1,2 IT services companies, consulting and services, €34.3 billion, fell 1.8%, and technology consulting 2.5%. ¹ Numeum expects a rebound to 4.3% in 2026, but only 1.4% for IT services companies. ^1,2

In the first half of 2025, 32% of service providers reported a fall in their utilisation rate, 40% expected revenue to decline and 36% planned to hire fewer graduates. ³ At the same time, the delivery model has shifted: 77% of new projects were delivered as SaaS in the second half of 2025, against 53% in 2021. ¹ Value is moving from the billed day to subscriptions, managed services contracts and platforms.

Cybersecurity, data and artificial intelligence remain the segments where demand is not weakening. The French cybersecurity agency ANSSI handled 3,586 security events in 2025, including 1,366 confirmed incidents, according to its cyber threat overview published in March 2026; the fall from the Olympic Games peak does not change the picture of constant pressure on companies, local authorities and healthcare facilities. ⁴ This threat durably supports demand for consulting, integration, SOC, managed services and incident response, and these are the trades where acquisitions are concentrated.

The six drivers of consolidation

The end of easy growth and pressure on margins. When key accounts cut budgets and renegotiate rates, mid-sized generalist IT services companies absorb both bench time and lower prices. Larger groups smooth these shocks across more clients and trades.
The shift to recurring revenue. Outsourcing, managed services, hosting, SOC, application maintenance, subscriptions: this predictable revenue is what buyers look for and what banks finance. A provider that has turned its time-and-materials work into multi-year contracts changes category.
Shrinking supplier panels and access to key accounts. Procurement and IT departments want fewer providers, able to integrate several components, meet service commitments and pass demanding vendor qualification processes. Critical mass, certifications and vendor partnerships open these markets; a fifty-person company accesses them more easily backed by a group than alone.
Regulation, led by NIS 2. The NIS 2 directive, being transposed, will apply to several thousand French entities in eighteen sectors, with penalties calculated as a percentage of global revenue. ⁵ The ANSSI framework requires these entities to check their IT providers' compliance contractually and periodically. ⁵ For a managed services provider or integrator, it is both a new market and a barrier: certifications, documented processes, on-call duties and SOC are amortised through size.
Cloud and artificial intelligence. Spending on cloud platforms continues to grow strongly and 72% of providers surveyed list generative AI among their priorities. ⁶ Among publishers, Numeum already measures 12.5% productivity gains from AI. ^1,2 Keeping up with these investments and industrialising offers requires resources a fifty-person company struggles to assemble alone.
Scarcity of skills. Cybersecurity, cloud, data and AI profiles remain hard to recruit and retain. SMEs in the sector rely on 21% freelancers and subcontractors, against 7% in large groups. ⁷ Buying an established team is often still faster than building one.

Who buys IT services companies and software publishers today

Local service groups. Koesio, Xefi or Adista buy, year after year, regional resellers, integrators and managed services providers serving micro-businesses, SMEs and local authorities. In 2025, Koesio took over Conectia in the Paris region after selling its key account subsidiaries to refocus on this target. ⁸ These groups look for territorial coverage, managed services contracts and stable teams.
Fund-backed platforms. Nomios, a Franco-Dutch specialist in network security and managed services, passed from Waterland to IK Partners then to Keensight Capital in 2023, each time with a European consolidation mandate and management reinvesting. ⁹ The pattern repeats in managed services and data: each new shareholder relaunches acquisitions.
Cybersecurity groups. Pure players and subsidiaries of large groups complete their consulting, integration, SOC or incident response capabilities by buying already established certified teams, with a cross-selling logic across their client base. For a specialist company, strategic interest can exist at a still modest size when expertise is rare and the team stable.
Large groups and listed mid-caps. Capgemini, Sopra Steria, Devoteam or Accenture complete their offer through targeted acquisitions, often abroad, but also in France when a technology niche justifies it.
Software consolidators. For a business software publisher, buyers are other publishers, groups specialising in vertical software and funds attracted by recurring subscriptions. The segment's growth attracts far more capital than services.
Peers. Most deals are still made by IT services companies themselves, on targets most of which have less than €15 million in revenue, to win a client or a region. ^6,10

An IT services company's capital can be freely transferred. A change of control is not neutral for all that: framework agreements with key accounts and public bodies often include notification or termination clauses, and vendor listings and certifications are attached to the entity. These points determine its timetable.

What this changes for the owner

A full sale suits a founder who wants to hand over, with a transition of twelve to twenty-four months and often an earn-out linked to activity.
A partnership with reinvestment is for an owner, whatever their age, who still has several years of activity ahead and sells a majority to a platform, reinvests part of the price in the group's holding and continues to grow while sharing in the next capital gain.
A combination between peers creates a regional or specialist IT services company able to respond to tenders and carry investments in cybersecurity or AI.
A capital reorganisation such as an OBO lets the founder monetise part of their shares and bring in branch managers or technical leads, with bank debt or a minority investor.

Whatever the structure, headcount is not enough to judge a services company or publisher. Buyers look at the nature of assignments, their recurrence, recruitment cost and the company's ability to retain its experts. At equal size, a company is valued very differently depending on whether it sells days or contracts. The criteria that come up in every file are the following.

Mix between time-and-materials, fixed price and managed services. The share of recurring revenue, remaining contract terms and renewal history give the visibility buyers look for and banks finance. Each model carries a different level of risk.
Client concentration. Dependence on one or two key accounts or a few public contracts must be documented, with change-of-control clauses and renewal dates.
Gross margin by activity and day rate. Revenue per client, average day rate, margin per assignment and consultants' cost allow profitable growth to be distinguished from volume.
Utilisation and use of subcontracting. Bench time, the share of freelancers and subcontractors and the ability to staff quickly determine real performance beyond revenue.
Expertise, certifications and partnerships. Rare skills in cybersecurity, cloud, data or AI, certifications expected by regulated clients and vendor partnerships strengthen differentiation and access to key accounts.
Team stability and management. Turnover, pay policy, employer brand and managers able to carry accounts and teams determine continuity after the deal. A management team that holds the client relationship is a strong argument.
Intellectual property and compliance. For a publisher, ownership of code and data; for all, contractual security commitments, compliance with the requirements of NIS 2 clients and process documentation.

You are thinking of selling: is this the right moment for you?

This is the first question we ask, and the answer is not the same for everyone. The right moment is never automatically "right now", even in a market where buyers remain numerous. It depends on two things: you, meaning your life plans, personal horizon and wealth objectives, and your company, meaning its ability to realise today all the value it holds. We encounter two situations.

Your company is almost ready. Recurring revenue is in the majority, the client base is diversified, teams are stable. Or you want your company to become part of a larger project, that of a group, often under LBO, that brings the tools, expertise and resources to absorb changes in the sector, which is reassuring for you and for your teams. A few weeks of preparation are then enough to go to market, and the number of buyers works in your favour.
Your company needs time. One or two key accounts weigh too heavily in revenue, margins were hit by a year of bench time or a fixed-price project that overran, activity remains mainly time-and-materials, the certifications regulated clients expect are missing. Selling remains possible, but it means accepting a discount. A market slowdown can instead be used to improve the assignment mix, develop recurring revenue and reduce bench time before opening a process. We will then tell you frankly that it is better to spend several months, sometimes a few years, working on these points, and we can support you through that phase before launching the transaction when you are truly ready.

The workstreams that make the difference are well known: convert time-and-materials work into managed services contracts or subscriptions, document the contract base and its recurrence, rebalance the client portfolio, make project margin tracking reliable by reconciling revenue per client, day rate, assigned consultants, tenure and pipeline, obtain the certifications that matter, give managers a stake and, for a publisher, clarify code ownership. Depending on your starting point, they take a few weeks or a few years.

The benefit of talking early, even without being sure you want to sell, is precisely knowing which of these two situations you are in, and deciding with full knowledge rather than under the pressure of an unexpected approach.

Facing groups and platforms that complete several acquisitions a year with dedicated teams, an IT services owner negotiating alone is rarely on an equal footing. The value of a services company or publisher is not just an amount: it depends on the buyer's plan, the price structure, the portion conditional on future results, the share reinvested, the warranties and the future of the teams. Two offers at the same headline price can mean very different things.

The role of an independent M&A adviser is to value the company objectively, identify all relevant buyers, groups, platforms, peers and foreign buyers, put them in competition in a structured and confidential process, and negotiate terms beyond price alone. This competition protects the seller: it lets them compare genuinely different projects and choose the one that fits their objectives and their teams.

Frequently asked questions

Which IT services companies are most sought after by buyers?

Those with differentiating expertise in cybersecurity, cloud, data or AI, a growing share of recurring revenue from managed services or subscriptions, a diversified client base and stable teams led by managers able to carry accounts. A company mainly doing time-and-materials work remains saleable, but its value will rest more on its consultants and clients than on multi-year contracts.

Why is the cybersecurity sector consolidating?

Because clients want complete offers, from consulting to SOC and incident response, and skills are scarce: for a group, buying an already established certified team is faster than recruiting one. The persistent threat measured by ANSSI and the obligations arising from the NIS 2 directive support demand, which attracts cybersecurity groups and investment funds alike.

Can you sell your IT services company and keep running it?

Yes, that is the partnership with reinvestment model: the owner sells a majority to a group or platform, reinvests part of the price in the group's holding, continues to grow with greater resources and shares in the capital gain at the next transaction. A capital reorganisation such as an OBO lets you monetise part of your shares and bring in managers without losing control.

How long does it take to sell an IT services company?

Generally six to twelve months between the first conversation and signing: preparing the file, confidentially approaching buyers, offers, due diligence, negotiation and formalities. A founder transition of twelve to twenty-four months often follows, with an earn-out linked to activity.

Who buys IT services companies and software publishers today?

Local service groups covering the territory, fund-backed platforms making acquisition after acquisition, large groups and listed mid-caps for technology niches, cybersecurity groups, vertical software consolidators and, for most deals, peer IT services companies wanting to win a client or a region.

Does a change of control of an IT services company raise regulatory or contractual issues?

An IT services company's capital can be freely transferred and no approval is required. However, framework agreements with key accounts and public bodies often include notification or termination clauses on a change of control, and vendor listings and certifications are attached to the entity. Clients subject to NIS 2 must also check their providers' compliance, which the buyer will verify.

Is this the right time to sell your IT services company despite the market slowdown?

The IT services market has slowed, but buyers remain numerous and selective: a company with mostly recurring revenue, a diversified client base and stable teams can go to market within a few weeks. If time-and-materials work dominates or one key account weighs too heavily, it is better to use the period to improve the assignment mix before launching the deal.

Why put several buyers in competition to sell your IT services company?

Because a local service group, a fund-backed platform, a cybersecurity group and a peer do not value the same things and do not offer the same project to the teams. A confidential process that puts them in competition allows you to compare genuinely different offers and negotiate beyond the headline price: the portion conditional on results, the share reinvested, warranties and the future of consultants.

Public sources consulted

Numeum, Communiqué de presse, Marché du numérique : bilan 2025 et perspectives 2026 (18 décembre 2025) : https://numeum.fr/wp-content/uploads/2025/12/Numeum_Communique-de-presse-S2-2025-2026.pdf (high reliability)
Numeum, Tendances du marché du numérique en 2025 : une fin d'année sous le signe d'une légère reprise et d'un retour progressif à la croissance en 2026 (19 décembre 2025) : https://numeum.fr/economie-marche/tendances-du-marche-du-numerique-en-2025-une-fin-dannee-sous-le-signe-dune-legere-reprise-et-dun-retour-progressif-a-la-croissance-en-2026/ (high reliability)
Le Monde Informatique, Coup de froid sur le marché français des services IT, d'après l'observatoire de conjoncture Numeum (25 juin 2025) : https://www.lemondeinformatique.fr/actualites/lire-coup-de-froid-sur-le-marche-francais-des-services-it-97258.html (good reliability)
ANSSI, Panorama de la cybermenace 2025 : la France toujours sous la pression des cyberattaquants (11 mars 2026) : https://cyber.gouv.fr/actualites/panorama-de-la-cybermenace-2025/ (high reliability)
ANSSI, Mes services cyber : la directive NIS 2, périmètre, obligations et référentiel (consulté en octobre 2026) : https://messervices.cyber.gouv.fr/nis2 (high reliability)
Le Monde Informatique, Les SSII misent principalement sur la cybersécurité, le cloud et la GenAI (18 février 2026) : https://www.lemondeinformatique.fr/actualites/lire-les-ssii-misent-principalement-sur-la-cybersecurite-le-cloud-et-la-genai-99378.html (good reliability)
KPMG et Numeum, Étude ESN et ICT 2024, 7e édition (octobre 2024) : https://numeum.fr/wp-content/uploads/2024/10/Etude-ESN-2024.pdf (high reliability)
Le Monde Informatique, Avec le rachat de Conectia, Koesio se renforce en Île-de-France (27 mai 2025) : https://www.lemondeinformatique.fr/actualites/lire-avec-le-rachat-de-conectia-koesio-se-renforce-en-ile-de-france-96938.html (good reliability)
CFNews, Un fonds tricolore sécurise le rachat de Nomios (30 juin 2023) : https://www.cfnews.net/Acces-libre/Un-fonds-tricolore-securise-le-rachat-de-Nomios-446957 (good reliability)
Solutions Numériques, ESN : la fin de l'euphorie, l'entrée dans un cycle plus sélectif (13 février 2026) : https://www.solutions-numeriques.com/esn-la-fin-de-leuphorie-lentree-dans-un-cycle-plus-selectif/ (good reliability)