Research anddevelopment : a strategic lever for accelerating digital transformation
Digital services companies (ESNs) are investing heavily in research and development (R&D), which is essential for responding to the acceleration of digital transformation and numerous regulatory requirements. The sector is undergoing major changes: between the widespread adoption of electronic invoicing expected by 2026 and the emergence of new technologies such as generative artificial intelligence (AI), players must remain competitive and relevant. Budgets allocated to R&D enable continuous innovation, particularly in terms of automating processes, strengthening data security, and meeting the increasingly sophisticated digitization needs of businesses.
For example, one-stop-shop solutions, which integrate several features, are increasingly in demand by large accounts and SMEs/VSEs. These innovations, often driven by regulatory requirements such as electronic invoicing, offer a double advantage: they enable digital services companies to retain their customers while capturing new market segments.
According to a recent study by Xerfi (a private research institute specializing insectoral economic analysis in France), the dematerialization market is expected to grow by 7% per year between now and 2026, exceeding €12 billion. There is therefore a market to be "served" with rapidly growing needs. However, while internal R&D is a strategic asset, some companies are choosing external growth to accelerate their innovation capacity. This strategy consists of acquiring complementary companies in order to quickly strengthen their expertise or gain access to new technologies.
Here are the 10 largest mergers and acquisitions in France as of the 2ndhalf half of 2024:
- July 2024:
The Talan Group, an international expert in consulting and technological expertise, announces the signing of a memorandum of understanding to acquire the Lyon-based Coexya group, backed by the independent pan-European investment fund Argos Wityu. Coexya (>1,000 employees) is an independent, multi-specialist digital player in the fields of consulting, integration, software publishing, and enterprise infrastructure. In a press release, Talan states: "The new entity aims to generate more than €880 million in revenue in 2024, with more than 7,000 employees, and is targeting revenue of €2.5 billion by 2030 ."
Valiantys (Toulouse/31), the global leader in Atlassian solutions and professional services, announces the acquisition of US-based Contegix, a recognized provider of Atlassian solutions for teams in the public and private sectors. The acquisition is supported by Keensight Capital, a leading private equity fund dedicated to pan-European growth buyout investments. This acquisition strengthens Valiantys' position as the global leader in Atlassian solutions and professional services and enables it to expand in North America, doubling the size of its potential market.
Parquest Capital, the private equity firm, acquires a majority stake in Amelkis, a French publisher of SaaS software for finance departments. Amelkis is a publisher of CPM (Corporate Performance Management) software, specializing in financial consolidation and reporting (financial and non-financial).
Marlink (Paris/75), the leading provider of managed services for critical ICT solutions for businesses, has finalized the acquisition of 100% of Diverto (Croatia), a pioneer in providing advanced IT and OT security solutions for businesses and critical infrastructure.
The family-owned company Desmarez, France's market leader in professional radio communications (PMR, Professional Mobile Radio) and personal protection, particularly PPMS (Plan Particulier de Mise en Sûreté) devices, has acquired the northern French company TEL (Télécommunication Électronique du Littoral), an expert in radio communications, video security, conference translation, and sound systems.
Dassault Systems (a subsidiary of the Dassault Group), a software publisher specializing in 3D, 3D digital mock-ups, and solutions for product lifecycle management (PLM), has acquired the software business of AMCAD ENGINEERING (Limoges/87), a publisher of RF and microwave circuit performance analysis software and manufacturer of these same circuits.
- September 2024:
Gimv (a European investment company with over 40 years of experience in private equity), its founders, and management are selling their stake in Mega International, a French international software publisher, to Bizzdesign, the French leader in enterprise architecture. Another major organization in the field of business transformation will join the new entity backed by Main Capital, bringing the new group's revenue to €110 million, with more than 600 employees.
- October 2024:
Northern French e-retailer Vert Baudet (2023 turnover: €330 million) has acquired Berlin-based website Tausendkind, which, like Vert Baudet, specializes in children's products. Vert Baudet aims to generate more than a quarter of its turnover in the DACH region (Germany, Austria, Switzerland).
Exosens (Mérignac/33), the world leader in amplification, detection, and imaging technologies, has signed an agreement to acquire Spanish company NVLS (Night Vision Laser Spain), a specialist in night vision equipment. The acquisition of NVLS will enable Exosens to strengthen its innovation capabilities in the multi-sensor platform segment.
- November 2024:
ChapsVision, a leader in AI-enhanced data processing, announces the acquisition of Sinequa, a global leader in enterprise search engines augmented with RAG (Retrieval-Augmented Generation). ChapsVision has raised €85 million from its existing investors (Tikehau Capital, alternative asset manager, Qualium Investissement, Bpifrance, GENEO Capital) and its new investor Jolt Capital.
And on the Docoon partners and customers side:
The Isagri Group (turnover: €340 million, 3,000 employees), a specialist in agricultural management software based in Beauvais, has recently made three new acquisitions. In September, the European leader in IT solutions for agriculture acquired French fintech company Bobbee, which offers all-in-one web-based solutions to bring accounting firms and businesses together on a single platform. In October, Isagri acquired the Spanish company Top 1 Nuevas Tecnologias and its Bacosoft software. Top 1 Nuevas Tecnologias, publisher of the Bacosoft platform dedicated to the management of legal and regulatory declarations, is a benchmark in Spain, particularly for Bodegas (wineries). Finally, in November, Isagri announced the acquisition of Filosoft by CentralGest, its Portuguese subsidiary. Filosoft specializes in invoicing, accounting, tax, payroll, and human resources software for accounting firms and businesses.
⇒ The Isagri group uses the Docoon multichannel messaging platform to send information and alerts to farmers.
The Septeo Group (3,000 employees, 2022 turnover: €310 million), a leading software publisher in Europe, has acquired We Recruit, a French recruitment software publisher. This strategic acquisition strengthens Septeo's HR division in France and marks an important step in the expansion of its HMRS (Human Management Resources System) offering. More recently, Septeo confirmed two new acquisitions. The first was Ideta, a publisher of no-code solutions for creating chatbots, callbots, and AI assistants based on generative artificial intelligence and Nivimu, a Spanish publisher of HR software. This latest strategic acquisition marks an important step in Septeo's expansion, strengthening its presence in Spain and Portugal.
⇒ Septeo Hospitality (formerly Sequoiasoft), a subsidiary of the Septeo Group and publisher of management and e-commerce software for the tourism sector, uses the Docoon multichannel messaging platform to send and manage large volumes of emails and text messages.
External growth: an agile response to the challenges of digitization
For players in the digitization sector, external growth is a doubly advantageous strategy. On the one hand, it allows them to integrate emerging technologies without suffering the delays inherent in traditional R&D. On the other hand, it offers an agile response to rapidly changing markets. Faced with the growing demand for electronic invoicing and process digitization, acquiring specialized companies or innovative start-ups is becoming a way to expand their portfolio of solutions while gaining a time advantage over their competitors. In addition, external growth opens up new geographic or sectoral markets.
Choose 1 white label PDP
As part of the electronic invoicing reform, Docoon is offering publishers the opportunity to integrate its Partner Dematerialization Platform (PDP) solution under a white label white label. This saves them from having to deploy an internal solution that requires a considerable investment in time, money, and expertise.
Docoon, a key player in the field of digital trust and dematerialization solutions in France, aims to consolidate its presence in the electronic invoicing market while expanding its functional capabilities. With this in mind, the Group is continuing to explore strategic partnerships with other companies. In January 2024, this strategy took shape with the acquisition of Neovacom, a software publisher specializing in the automation of administrative and financial processes. Neovacom, publisher of the Freedz platform, is registered as a partner dematerialization platform (PDP).
