The Technology and IT sector is one of the most “hot” sectors of the Athens Stock Exchange, as it has undergone a significant re-rating, thanks to successive deals, but also the great opportunities offered both by the wider digitization of the economy and the Development Fund.
Exciting developments are underway in the sector, contributing to significant capital gains for shareholders, among others.
The sector’s shares trade at significantly higher levels compared to the rest of the market (P/E exceeds 30x), which is interpreted by the favorable prospects (Artificial Intelligence) and the scenarios for mergers-acquisitions.
Strong interest
Q&R is constantly in the spotlight lately, thanks to successive shareholder changes and the entry of new powerful “players”.
In addition to Q&R, there is also strong interest in Real Consulting – Performance Technologies, which are currently in the Alternative Market. The main shareholders of the two companies are preparing for the transfer to the main market in 2024, aiming to gain a decent share of the pie of available funds, which flow incessantly to the sector.
A few weeks ago, Entersoft announced the mega-agreement to transfer the majority package of shares to the Olympia Group, something that triggered an improvement of valuations in all Technology and IT companies.
The beginning of deals
The deals however had started much earlier. Specifically in 2021, when Epsilon Net and Space Hellas jointly acquired Singular Logic, foreseeing the great opportunities from the ongoing digital transformation. Two years later, the National Bank acquired 7.5% of Epsilon Net.
In 2022, the acquisition of Byte Computer by Ideal Holdings was also announced, while 2021 was preceded by the sale of Intrasoft by Intracom Holdings to NetCompany.
Valuation at 2 billion euros
All these developments, combined with the off-market deals of Viva Wallet, Taxi Beat and recently BETA CAE Systems, have raised the valuation of the sector at around 2 billion euros.
According to a recent analysis by Optima Bank, the sector is the most active in terms of deals, as more than 40 acquisitions/mergers have been completed since 2021.
The capitalization of Technology and IT companies
• Quest 611 million euros
• Epsilon Net 510 million euros
• Ideal Holdings 300 million euros
• Entersoft 235 million euros
• Profile Software 105 million euros
• Real Consulting 87 million euros
• Performance Technologies 73 million euros
• Space Hellas 51 million euros
• Quality & Reliability 34 million euros
• ILYDA 14 million euros
• CPI 8 million euros
• Logismos 6 million euros
