TECH IS TRANSFORMING THE TIC INDUSTRY AND LIFTING VALUATIONS

M&A at the crossroads, as new TIC strategies take hold:

• The global addressable TIC market is worth €95bn, and growing at 5% p.a. on a long-term basis. The market has historically been driven by a constant supply of new and tighter regulations, as well as GDP growth and outsourcing. However the market is currently being transformed by new growth boosters arising from societal expectations and technology.
• The market is being heavily disrupted by digitalisation and technology: digital, data, software, sensors and measuring instruments are rapidly transforming operational processes, service offers and business models. TIC solutions are becoming core digital tools, to better manage risks and improve performance.
• M&A activity is high, with 1,000+ deals completed over the past 5 years. The top 12 market leaders worldwide account for c. 35% of the total deals. Transactions are being performed all over the world, with Europe and the US leading the race, representing around 80% of the M&A market.
• Accelerated market consolidation is expected, as M&A is being widely used to accelerate strategies:

1. 1. 1. Fast-growing tech-enabled players attract growth capital;
      2. Private equity invests in buy & build platforms and sponsors transformational acquisitions;
      3. Market leaders sell non-core assets and acquire strategic tech-enabled targets to bolster transformation.