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Software Consolidators Insights: An Emerging Exit Route for CEE Tech Companies

Software consolidators that have been active across North America and Western Europe are increasingly turning their focus to CEE region. As Absolvo successfully closed deals with them (and negotiating more continuously), we see growing interest from leading global and European software consolidators.
November 14, 2025
5 min read

Software consolidators that have been active across North America and Western Europe are increasingly turning their focus to CEE region. As Absolvo successfully closed deals with them (and negotiating more continuously), we see growing interest from leading global and European software consolidators – including Jonas Software, Everfield, saas.group Visma, Vesta Software Group, Abingdon, Valsoft, Shop Circle, Balio and others – actively targeting Europe as well as the CEE and SEE markets. We maintain ongoing dialogue with these buyers, exploring new opportunities in the region’s fast-maturing software ecosystem.

What Defines a Software Consolidator

Software consolidators differ fundamentally from traditional private equity (PE) firms or strategic buyers. They operate under a Buy, Build & Hold philosophy, i.e. acquiring, and developing vertical software and SaaS companies to create sustainable long-term value rather than short-term financial returns.

Their focus areas include:

  • ARR stability and recurring revenues. They target companies with predictable cashflows, high retention, and strong customer lifetime value. Low churn is key! Check your industry average, should you be better than the others, that can be valuable.
  • Founder-friendly approach that offers flexible transition plans, keeping management teams in place, and ensuring cultural continuity.
  • Operational efficiency, centralising finance, HR, and IT; leveraging cross-portfolio synergies; and driving scalability across fragmented markets. Because they are usually backed by permanent capital (in some cases publicly listed companies), consolidators can hold assets indefinitely, prioritising operational excellence and organic growth over time

How Consolidators Differ from PE and Strategic Buyers

Founders or VCs considering an exit should understand the three key buyer types in SaaS M&A:

  1. Private Equity (PE): financial investors aiming for leveraged growth and a 3–5-year exit horizon.
  2. Strategic Buyers: larger software or IT groups acquiring for technology or customer synergies, often integrating targets into existing structures.
  3. Software Consolidators: permanent owners who combine the operational discipline of strategics with the agility and speed of financial investors. They offer continuity, stability and partnership for founders.

Tailoring your transaction story and financial narrative to these buyer profiles is critical to maximising value and closing a deal that aligns with your goals.

Comparing Software Consolidators with Strategic Buyers and Private Equity

Ideal Targets for Software Consolidators

From Absolvo’s transaction experience, several attributes define the “sweet spot” for consolidators when evaluating acquisition targets in Europe and CEE / SEE:

  • Predictable recurring revenues: consolidators favour SaaS or software-license models with high retention rates and typically €2-10 million ARR size (some might pursue larger deals), or from 500k-1million EBITDA
  • Vertical or niche market leadership. Companies serving a well-defined vertical segment – with strong product-market fit, established brand reputation and defensible customer relationships – are preferred over generalist or horizontal platforms. However, they are such serial acquirers who rather look for min 15-20% ARR growth and horizontal, global solutions. Meaning should you be a rather local or regional software business, or a SaaS company with customers all around the world, these investors can be equally an option too.
  • Most consolidators seek EBITDA-positive businesses, valuing stable cashflows over hyper-growth, while part of them are not keen on short term EBITDA but ARR growth.  
  • Strong teams and founder continuity: transactions often allow founders or key managers to leave (even immediately) or remain involved post-deal. Leadership continuity and a collaborative mindset are viewed as core to integration success.

Why Europe and the CEE Region Are in Focus

The consolidation trend is no longer confined to Western Europe. In recent years, we see CEE and SEE emerging as strategic growth regions for global consolidators.

Absolvo’s experience highlights three drivers:

  1. Attractive valuations: CEE SaaS firms often trade below Western European multiples despite strong retention and solid ARR.
  1. Fragmented market structure: ideal for roll-ups and operational integration.
  1. Proven founder quality: the region has a deep pool of experienced founders who have built profitable, global-focused / export-ready SaaS companies
Recent regional examples include Smartbill’s acquisition by Visma or Vesta Software Group’s acquisition of ArenimTel – that was solely advised by Absolvo. These transactions illustrate the sweet spot for consolidators: stable, recurring-revenue businesses with loyal customer bases and vertical expertise.

AI Integration and Its Growing Role in SaaS M&A

The impact of AI on software transactions is increasingly visible. Consolidators now assess how AI enhances a target’s efficiency, product roadmap, or data strategy. For founders preparing to sell, articulating a credible AI vision can significantly boost buyer interest and valuation.

Transaction Dynamics and Valuation Insights

Software consolidators maintain dedicated in-house M&A teams, allowing them to evaluate opportunities efficiently and move swiftly once interest is established. They avoid bidding wars but are willing to pay competitive valuations for high-quality assets with transparent metrics and recurring revenue visibility.

Based on our experience, they are quick in assessing the targets, able to provide an LOI in 2-3 weeks. The chance of closing a deal is extremely high, they understand what they want and once Parties find common ground, they move quickly – that is highly preferred by the CEE entrepreneurs also.

Founders with a clear, well-structured transaction story, clean financial data, and defensible ARR metrics tend to achieve stronger outcomes, even within consolidators’ disciplined valuation frameworks.

The vertical software integrators prefer all cash deals, which may not be the case when it comes to mid-market strategic buyers (where founders may get stocks). Therefore, these software buyers can be a good option for VC-backed tech companies also.

Absolvo’s Role in the CEE/SEE SaaS M&A Ecosystem

Through our direct relationships with leading consolidators across Europe and beyond, we help founders:

  • Understand buyer logic and value drivers
  • Prepare financials and KPIs that resonate with investors
  • Communicate growth, scalability effectively
  • Navigate deal structures that result in better deal outcomes
Our ongoing conversations with over 160 investors monthly (including top consolidators) and our successfully closed deals with Vertical Software Integrators ensure that Absolvo’s clients in Hungary, Romania, Slovakia and the wider CEE/SEE region remain visible to the most active and relevant acquirers in today’s market.

Common terms you'll meet for Software Consolidators
• Serial Acquirer
Companies that repeatedly acquire businesses as a primary model.

• M&A Compounder
Firms that compound growth through continuous acquisitions and reinvestment. Scalable, repeatable M&A-driven growth.

• Roll-Up Specialist
Focus on integrating multiple acquisitions into a larger platform or ecosystem.

• Vertical Market Software (VMS) Acquirer
Targets niche, industry-specific software companies (e.g., healthcare, logistics).

• Vertical SaaS Integrator
Specializes in SaaS solutions for specific industries.

• Buy-and-Hold Acquirer
Positions as a permanent home for acquired companies, often “forever ownership.” Different from private equity’s exit-driven model.

• Permanent Capital Investor
Highlights long-term, non-exit-oriented approach backed by stable capital. For founders seeking stability.

• Decentralized Operator
Maintains autonomy for acquired businesses while sharing best practices. Attractive for founders who value independence post-acquisition.

• Growth Accelerator for Mission-Critical Software
Focus on essential solutions for specific industries.

How Private Equity Works - with Special focus on CEE region

Private equity has evolved into a cornerstone of the financing landscape in Central and Eastern Europe. What began as a niche alternative to bank financing has grown into a sophisticated asset class with multiple strategies—from growth equity and buyouts to turnarounds and carve-outs. As investors broaden their presence in the region, founders and management teams increasingly encounter PE as a partner in expansion, succession, or transformation. To make sense of its growing role, it is essential to understand what private equity is, how it has developed in Europe, and the specific deal structures most common in CEE.
November 11, 2025
5 min read

How Private Equity is Evolving in Central and Eastern Europe

Private equity activity in Central and Eastern Europe continues to reflect the region’s growing maturity and strategic importance. As investors increasingly recognize CEE’s strong fundamentals and integration into global markets, deal flow and capital commitments have remained resilient.

Global private equity investment reached approximately €755B in H1 2025, with Europe accounting for around one quarter of this total (€220B), while the CEE region represented about €12B.

Several international private equity firms are highly active in the CEE region like Cinven, Hg or Ardian Group, and regional private equity firms like Abris Capital, Innova Capital or MCI Capital are also building platforms and consolidating. This continued presence of leading firms underscores the long-term strategic commitment to the region.

There are several trends influencing the world of PE. Globally, AI and advanced analytics are starting to reshape how investors screen and manage companies. In CEE, however, adoption is still at an early stage and largely limited to pilot projects. At the same time, valuation levels in CEE have been gradually moving closer to Western Europe, reflecting rising investor appetite and greater market maturity. In this environment it is worth turning to the basics - what private equity means, how it works in CEE, and how it differs from other forms of investment.

What is Private Equity?

Private Equity (PE) refers to direct investments into private companies, or public companies taken private, with the goal of enhancing value through active ownership and operational improvements. Unlike passive shareholders, PE investors actively shape strategy, strengthen management, and drive growth initiatives. The eventual goal is to exit the company at a profit, usually within a defined time horizon. Private Equity firms generally aim for a 2-3x return on their investment over a 4–7 year holding period. According to Invest Europe and Pitchbook data, European mid-market funds have delivered around 17% net IRR over a 10-year horizon. These figures illustrate the return profile investors expect, though actual outcomes vary by strategy and region. 

Many times, you’ll hear “PE vs VC”, but to be precise on it: "Private Equity" is the broader umbrella term for investing in private companies. "Venture Capital" is one specific, distinct category under that umbrella, distinguished by its focus on early-stage companies with high growth potential Other PE strategies - such as growth, buyout, or turnaround - target more mature businesses that already generate revenue and profits. PE investments are larger, the risk profile is lower, but the expectations for discipline and results are higher. Private equity is commonly used to describe larger buyout and growth funds.

Comparing Private Equity and Venture Capital in CEE
(based on Dealroom and Absolvo deal experience)

The Evolution of Private Equity in Europe

According to Invest Europe’s European Private Equity & Venture Capital Activity Report, total investment value across Europe reached around €126B in 2024 and €220B in 2025 H1, marking a strong rebound from prior years.  

Key highlights reflected in the data:

  • Since the early 2000s, both the number of PE/VC firms and the volume of deal activity in Europe have grown substantially, despite cyclical downturns.
  • While overall deal volume has declined in recent years, the average deal size has increased sharply.
  • Buyouts continue to represent the majority of total value, confirming their role as the dominant driver of private equity activity. 
  • Central and Eastern Europe specifically shows investments of €2.83B - up 50% year-over-year - with buyouts alone accounting for nearly €2B.
A képen szöveg, képernyőkép, Diagram, Betűtípus láthatóElőfordulhat, hogy az AI által létrehozott tartalom helytelen.
Annual investment value in the CEE region

Structures and Types of Private Equity Deals 

Not all PE deals look the same. Founders may encounter different structures depending on their stage and objectives:

  • Growth capital: PE funds provide a minority stake to finance expansion, whether into new markets, acquisitions, or new product development. This is common in CEE when a successful domestic business seeks to scale across the region. Deal sizes typically start from around €5-10 million in CEE, with larger transactions reaching €30-50 million, depending on the sector and maturity of the company. 
  • Buyouts: Here, the PE investor acquires a majority stake, often in situations where founders (or other financial investors) want to partially cash out, or where succession is an issue in family-owned businesses. Management buyouts (MBOs) are also common, PEs really open to finance talented management to takeover businesses and take it to a next level.  
  • Mixed deals: A combination of growth capital and buyout, where both expansion and partial exit are on the table.
Beyond providing capital, PE funds apply distinct strategies to create value. These approaches vary from growth support to restructuring, and from management-driven buyouts to complex leveraged transactions.

Private Equity Strategies

Private equity funds deploy a variety of strategies to generate returns and create long-term value. These approaches differ by deal structure, ownership level, and the operational levers applied to portfolio companies. As a company owner interested to engage private equity, you must know this list:  

1. Buy & Build 

PE firms often acquire a platform company and then make multiple add-on acquisitions to create scale, synergies, and market dominance. This allows faster growth than organic expansion, creates economies of scale, broadens service offerings, and increases valuation multiples. Some PE firms in our region executed 20-22 add-on acquisitions per year. In CEE, buy & build is especially relevant in these fragmented markets, where PE funds often back management teams to lead consolidation and create regional champions.

How does it add value?

  • Cost synergies (shared operations, procurement)  
  • Revenue synergies (cross-selling, expanded customer base)  
  • Higher exit multiple due to increased size and market share

2. Management Buyout (MBO)

PE investors support the existing management team to acquire a controlling stake in the company, often as part of succession in family-owned businesses. While in Western Europe managers are expected to co-invest significant personal capital, in CEE this is rarely realistic, so investors use flexible structures to ensure alignment.

How does it add value?

  • Ensures continuity and incentivises management
  • Vendor financing or deferred consideration
  • Sweet equity structures tied to performance
  • Management incentive plans linked to value creation

3. Leveraged Buyout (LBO)

An LBO uses debt financing to acquire a company, with the target’s cash flows servicing the debt. This structure requires mature, cash-generating businesses, and in CEE, financing depends heavily on local banks’ willingness to support M&A.

How does it add value?

  • Financial engineering: debt leverage amplifies returns
  • Stronger financial discipline due to debt service
  • Operational improvements to boost profitability
  • Strategic repositioning to increase valuation multiples

4. Growth Equity

Minority or majority investments into companies with proven models and predictable cash flow. Unlike VC’s high-risk bets, PE funds can be comfortable with steady growth of 10–20% annually. In CEE, even in growth deals, funds often prefer significant minority or majority stakes.

How does it add value?

  • Capital injection for expansion (new markets, acquisitions, product lines)
  • Professionalisation of governance and operations
  • Strengthening management with key hires
  • Driving digital transformation

5. Turnaround / Restructuring

Targeting distressed or underperforming businesses, this strategy focuses on stabilisation and recovery. Investors intervene with operational, financial, and governance improvements to restore profitability.

How does it add value?

  • Cost restructuring and operational efficiency
  • Debt renegotiation and balance sheet repair
  • Supply chain optimisation and management changes
  • Strategic refocus on core profitable segments

6. Carve-Outs

PE funds acquire non-core divisions from large corporates and transform them into independent businesses. This requires setting up standalone structures and focused management teams.

How does it add value?

  • Unlock hidden value by focusing on core activities
  • Dedicated management and independent strategy
  • Efficiency gains and growth potential as a standalone entity

7. Secondary Buyouts

One PE fund sells a portfolio company to another PE fund, often as part of the next growth phase. This is increasingly common in CEE as the ecosystem matures.

How does it add value?

  • Continued scaling or international expansion
  • Fresh operational improvements
  • Optimisation of exit timing for sellers and new growth for buyers

Main takeaways for founders interested in Private Equity deals

Private equity in Central and Eastern Europe is a powerful force shaping ownership transitions, regional expansion, and long-term value creation. With rising valuations, more sophisticated deal structures, and growing investor appetite, CEE aims to align more closely with Western European markets while still offering unique opportunities. For founders and management teams, success in this evolving landscape will depend on readiness: strengthening governance, embracing technology, and engaging with the right partners to unlock growth and liquidity.

Why Absolvo?

At Absolvo, we prepare businesses and their owners, management for an exceptional PE deal, working with private equity investors across CEE and Europe, combining local insight with international transaction experience. With 380+ completed deals, we know how to position companies for the right investors, negotiate effectively, and maximise value at exit. If you are considering private equity as a path forward, our team is ready to guide you every step of the way.

What’s Driving the Rise of European M&A in 2025? Outlook and Opportunities for CEE Founders & Investors

Despite a global slowdown in M&A, Europe is breaking the trend. While worldwide deal volumes fell in H1 2025, European deal activity surged to its highest level in over a decade, powered by strong private equity exits, favourable financing conditions, and rising interest from international buyers.
September 3, 2025
5 min read

Global slowdown, but Europe challenges the trend

H1 2025 saw a 9% global drop in deal volumes, even as deal values surged by 15%, driven by bigger, high-conviction transactions. Europe, however, is challenging that global trend – based on Pitchbook data:

  • 10,274 M&A deals totalling over $516 billion were completed—marking the highest deal count in more than a decade.
  • Q2 alone saw $256.3 billion in deal value and 5,205 transactions, underlining sustained momentum.

Meanwhile, Pitchbook also reported that Europe led the globe in private equity exits during H1 2025, surpassing North America in deal count.

Surging appetites (European M&A) in H1 2025, according to Pitchbook data

What is driving deal activity in Europe?

Several factors explain Europe’s resilience in H1 2025 and support a positive outlook for H2:

  • Valuation gap vs. US.: European companies are still priced lower than US peers, which draw interest from strategic and PE buyers.
  • Financing advantage: The ECB cut rates twice this year, while the US Federal Reserve kept steady. Lower financing costs support both dealmaking and valuations.
  • Sector focus: Tech, IT services, and software continue to attract the most activity, while energy, automotive, and chemicals remain under pressure from tariffs and higher input costs.
  • Sustained appetite from non-European acquirers: PitchBook data shows that despite softer volumes in recent years (compared to a big boom in 2021-22), overseas buyers continue to deploy significant capital into European targets, with $114.9B already recorded in 2025.  
European M&A activity with non-European acquirer (2015-2025)

Snapshot of CEE: Strategic opportunity and confidence

Looking back to the M&A history of the region, MergerMarket analysis shows a strong upward trend in deal volumes across the CEE region since 2003, growing from 169 deals in 2003 to 1,074 in 2024. It represents a 9.2% compound annual growth rate (CAGR). After a peak in 2021 (1,245 deals), volumes slightly declined but have stabilized above 1,000 deals annually in the past three years, signalling sustained transactional activity in the region that seems to be progressing in 2025.

M&A in CEE: Total Deal Volumes (2003-2024)

Coming back to 2025, CEE continued to remain stable on sell-side activities, while buy-side transactions went up 3% in the beginning of 2025, according to Dealsuite. In comparison, the UK & Ireland (+8%) and the Netherlands (+6%) saw stronger buy-side momentum, while DACH (–3%) and France (–6%) experienced declines.

H1 2025 already saw notable CEE tech transactions, such as the acquisition of Poland’s Dealavo. EY also reported that while deal count in the region slowed, deal values jumped by 113% YoY, with mid- to large-scale tech transactions doubling. This shows CEE is no longer just a talent hub – it’s delivering real exit opportunities.

Across these deals, three patterns stand out:
  • Exit timing: founders sold after proving €10–20M ARR, before heavy international expansion costs kicked in.
  • Strategic logic: Western buyers used CEE acquisitions to add tech modules or engineering capacity faster and cheaper than building in-house.
  • Fund dynamics: regional VCs raising new funds pushed for realizations, driving proactive sale processes.
Sector-wise, CEE follows broader European patterns:
  • Business services and industrials lead in transaction volume.
  • Software and IT services are particularly attractive thanks to strong talent pools and digitisation trends.
  • Traditional sectors like automotive and construction remain active but face global trade and cost pressures

What does this mean for founders and investors active in CEE?

For founders, this means waiting for the “perfect moment” risks missing the buyer’s window. For investors, it underlines that CEE scale-ups are now proven exit stories, with buyers actively scanning the region. Preparation – in governance, metrics, and buyer relationships – will determine who captures premium multiples in the next wave.

Outlook for H2 2025: Optimism with cautiousness

Looking ahead to the second half of 2025, these are what we can expect:

  • Deal flow is expected to stay  strong, particularly in tech, infrastructure and services.
  • More private equity funds may sell their portfolio companies in H2, as  they look to return capital to investors and take advantage of active  buyer interest
  • Regional consolidation and possible megadeals will likely remain part of the picture, even as many founders continue to wait for the  “perfect timing” to sell.
  • Uncertainty remains, with tariffs, geopolitical risks and long-term rates still weighing on confidence. Yet, as PwC notes, “uncertainty may be the new constant”, and dealmakers who prepare strategically will outperform.

Summary

H1 2025 proved that European M&A is resilient, with deal flow at decade-high levels. For CEE, rising buy-side demand and steady valuations mean that both founders and investors have a real window of opportunity in H2. Let’s see at the end of the year how it turns out.

How Absolvo can support you in your M&A strategies?

At Absolvo, we know that preparation and the right partner can make or break a deal. Our experience shows that founders who prepare well in advance (often 2–3 years before a potential exit) and strategically position their business while accessing the right investors can achieve 2-3x better valuations and receive more competitive offers. With decades of M&A experience and a network of 28,600+ active investors, Absolvo help you navigate these times with confidence, because now may be the best time to act.

Reach out if you want to talk to us and prepare together for mastering your M&A strategy and exit opportunities.

Sources:

Pitchbook Report 2025

Mergermarket Report 2025

PwC Report 2025

Dealsuite Report 2025

M&A Trends in Central and Eastern Europe: What Recent Tech Acquisitions Reveal from 2025 H1

In recent months, we closely analyzed dozens of recent technology M&A transactions in Central and Eastern Europe (CEE) – including transactions supported by our advisory team and other deals too in Poland, Bulgaria and the wider region – and identified six key patterns shaping the market.
July 9, 2025
5 min read

Pattern #1: Private Equity Fuels Strategic Expansion in CEE Tech

PE-backed multi-strategy execution

Like in a recent deal, where Hg is supporting JTL in advancing its SaaS product development while also enabling the company to expand regionally and into adjacent sectors, PE investors’ arekeen to find good targets. The acquisition of Dealavo is a prime example of these strategic objectives in action, just like Revolution Software’s by Seyfor, backed by Sandberg Capital and many more. This pattern is increasingly visible across the region; among our clients we see many CEE-based companies being approached by private equity-backed buyers.

PE backing fuels acquisition-led expansion

Since securing investment from Hg in Q4 2023, JTL-Software has completed five acquisitions - a notable shift from its previous track record of zero deals. With Hg’s capital and strategic support, JTL is aggressively growing its capabilities, market reach, and competitive position. Since Exadel partnered with Sun Capital Partners, the company has executed multiple acquisitions across Bulgaria and Poland. These moves expand its delivery footprint and align with a broader strategy to scale rapidly through inorganic growth

Takeaway

When a private equity firm backs up your potential buyer, it may be the right time to consider a transaction with them. PE involvement often signals future consolidation, strategic add-ons, and regional platform-building. Growth pressure and financing is given. We are directly involved in such transactions, often negotiating with private equity firms on the other side of the table. We’ve seen cases when a PE-backed company executed 25+ deals in 1,5 years, that highlights the pace and intensity of buy-and-build strategies once the capital and mandate are in place.

Pattern #2: Complementary Software Acquisitions Drive Product Innovation

Enhancing product offering

JTL strengthened its cloud-native multichannel suite by acquiring Dealavo’s advanced pricing and market intelligence solutions. This enhances JTL’s value proposition to existing clients and supports upselling within its ecosystem.

AI capabilities as a differentiator

Anthill, acquired by Exadel, brings significant expertise in data, AI, and enterprise software development. These capabilities align with Exadel’s strategy to deliver innovation-focused,high-value digital services.

Strategic fit

These buyers are increasingly focused on acquiring companies that complement their core platforms. By integrating specialized capabilities like pricing automation, data engineering,or cloud-native tools, acquirers can quickly expand their value offering. Simple as that: the buyer can offer additional features, modules or software to their existing client base almost immediately and start generating revenue (and profit) from day one.

Pattern #3: International Expansion Through CEE Tech Hubs

Global expansion through local leaders

Dealavo’s presence across 30+ markets supports JTL’s regional expansion goals, especially in the DACH region.

Cross-border scale

Savangard, acquired by Digia, already generated nearly 30% of its revenue outside Poland, helping Digia diversify risk and broaden its reach across Europe.

CEE as a delivery hub

With the acquisition of Anthill, Exadel makes Bulgaria its second-largest European delivery location. Buyers increasingly recognize CEE’s importance for nearshoring, talent access, and strategic delivery capacity.

These deals can illustrate a larger trend: once acquirers become active in the CEE region, they are more likely to pursue follow-on acquisitions due to growing familiarity with the legal and business environment.

Pattern #4: Smart Valuations in CEE Tech M&A Deals

Attractive pricing dynamics

Digia’s acquisition of Savangard at approximately 6.5x EBITDA reflects a disciplined yet strategic approach. This valuation is below the 8-12x EBITDA median typically observed in the regional IT services space.

Takeaway

High-quality targets that demonstrate growth, profitability, unique capabilities, visionary management and international reach continue to attract strong valuations, especially when they fit into larger strategic narratives.

Pattern #5: Retaining Local Talent and Brands in Regional Deals

Preserving team and identity

Savangard will continue tooperate as a subsidiary under Digia, retaining its leadership and brand (a model that supports client trust and post-deal stability).

Gradual integration

Anthill will initially operate as “Anthill by Exadel,” signaling respect for the company’s culture and relationships while ensuring alignment with the parent company’s global operations over time.

Takeaway

As per our experience, more and more acquirers – particularly in tech and innovation-driven sectors – are shifting away from fully integrating acquired teams to preserve innovation, retain talent and reduce cultural friction. Research also supports this trend,highlighting that light-touch integration and portfolio models help maintain agility and morale while enabling faster realization of value. Forcing integration can undermine the very qualities that made the target company attractive in the first place.

Pattern #6: Rise of the vertical software integrators

A new type of buyer is becoming increasingly active in CEE: vertical software integrators. These firms typically focus on a specific or narrow set of industries, and their goal is to build platforms of industry-focused software and services that can scale internationally. As global economic uncertainty led many strategic buyers to become more cautious in recent years, these specialized players have grown bolder. From the UK to Dubai, and from Germany to Poland, we're seeing more of these integrators actively exploring the region, engaging in deals and establishing a broader presence in CEE. We’ve seen this trend firsthand. Our team recently closed two transactions involving vertical software integrators, and we’re tracking several more in the pipeline.

Closing remarks

The Central and Eastern European technology M&A market is clearly evolving. International buyers - both private equity-backed and strategic - are actively acquiring regional companies to access talent, specialized capabilities, IP, and scalable platforms.

Successful targets often exhibit a combination of international client exposure, cloud or AI-enabledservices, globally tested products, and a strong niche focus. As more capital flows into the region and acquirers grow increasingly comfortable with local dynamics, we anticipate continued momentum in the CEE deal market.

About Absolvo

Absolvo specializes in M&A and growth financing, backed by 380+ completed deals collectively in the Central and Eastern European region. We support technology companies through strategic exits, private equity transactions, and cross-border growth initiatives. If you are considering an exit or a strategic partnership, our team is ready to help you prepare and position your business toward an exit that could deliver 3–5x its fair value.

Analyzed companies:

JTL Software - ERP-Software von JTL: Smarte Lösungen für den E-Commerce

Hg Capital - Hg | Building enduring software and services leaders | Hg

Dealavo - Competitor price tracking software & price analysis - Dealavo

Savangard - Homepage - Savangard

Anthill - Home - Anthill

Exadel - Enterprise Software Development and Consulting | Exadel

Digia - https://digia.com/

Sources:

Market Screener

Mergermarket

McKinsey Report 2022

PwC Report 2024

Channel E2E

Absolvo’s Partner, Iván Gyurácz Németh joined HVCA Board

We can proudly announce that Iván Gyurácz Németh has been unanimously elected to the Board of the Hungarian Venture Capital and Private Equity Association (HVCA) in 2024.
November 13, 2024
5 min read

Iván’s role at HVCA will further strengthen the connection between the CEE region’s tech sector and the venture capital industry, fully aligning with HVCA’s mission to elevate professional standards and drive private equity growth across Hungary and Central Eastern Europe.

He thus joins the board alongside long-established investors such as Euroventures and leaders from the most active VC/PE companies, including Lead Ventures and Portfolion, working together to shape the market.

Ivan’s experience in the regional venture capital landscape, paired with his expertise in internationalization, business development, and B2B marketing / sales strategies, will be vital in bridging the gap between tech entrepreneurs and strategic investors, fostering even stronger collaboration and innovation while advancing HVCA’s objectives.

Ivan Gyuracz Nemeth at the 25th HVCA Investment Conference

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