The Polish IT sector is maturing like fine wine stored in the cool cellars of medieval townhouses. While the pandemic-induced boom in rapid digital transformation has ended, the market continues to grow at a double-digit pace. This growth reflects increasing stability, particularly in the mergers and acquisitions (M&A) space, where investors are making decisions more thoughtfully, prioritizing companies with long-term value and scalable business models over quick profits.
Sustained Growth in 2024
According to Fitch Solutions, Poland’s IT market was forecast to grow by 19% year-over-year in 2024, reaching a value of PLN 140 billion. Early indications suggest this prediction was accurate. Evidence of this growth includes the number of new IT businesses being established. Data from Dun & Bradstreet shows that over 11,000 new IT companies were created in Poland between January and September 2024, with most concentrated in Warsaw and Kraków, long-standing hubs for technology. Notably, many of these new companies are focusing on niche areas such as automation and AI-driven data analytics, which continue to expand their application in business.
“A decade ago, Polish IT firms were mainly considered outsourcing back offices. Today, they operate in a mature business environment. Poland is no longer just a place where international players seek cheap labor; it has become a hub of innovation and a cradle of high-margin technological solutions,” says Łukasz Czechowski, CEO of People Trust, a company specializing in tech recruitment.
Strategic M&A Activity
The year 2024 saw stabilization in the M&A landscape, with 21 transactions recorded between January and September—the same number as the previous year, according to CMT Advisory. However, the nature and quality of these transactions have shifted. Instead of impulsive moves, investors are now opting for careful, analytical calculations, focusing on scalable business models and steady revenue streams. The Software as a Service (SaaS) model remains a clear favorite.
One notable deal occurred late in 2024 when DPS Software, the largest Dassault Systèmes partner in Poland, acquired Cadsol Design Polska. This acquisition expanded DPS Software’s portfolio to include tools for the automotive and aerospace industries, such as CATIA, DELMIA, and SIMULIA, while also adding Universal Robots to its distribution network. “This is a critical step toward creating a cohesive and complementary offering. The synergy between these companies will allow us to meet the demanding needs of our clients in production process optimization, design, and modern enterprise management,” said Paweł Dziadosz, CEO of DPS Software.
Other significant transactions included Prowly’s acquisition of Brand24 for PLN 43 million. Prowly, a subsidiary of U.S.-based SEMrush, integrated Brand24’s media monitoring technology to enhance its public relations platform. Similarly, MCI Digital Champions acquired a 65% stake in Profitroom for PLN 190 million. Profitroom, a provider of reservation management solutions for the hospitality sector, exemplifies how Polish companies are transitioning from outsourcing providers to premium solution creators in digital transformation.
Another high-profile deal involved Sygnity’s acquisition of Sagra Technology, a provider of cloud-based analytics solutions, for PLN 42.3 million. This transaction highlights three major trends: the growing importance of cloud services and SaaS, revenue diversification through subscriptions, and advanced data analytics as a competitive advantage.
Polish Startups with Global Ambitions
Polish startups are increasingly demonstrating global aspirations, with some reaching unicorn status. DocPlanner, a medtech company operating under the ZnanyLekarz brand in Poland, connects patients with doctors through intuitive online platforms. In 2024, it focused on integrating advanced AI solutions into its services.
Vercom S.A., a provider of Communication Platform as a Service (CPaaS) solutions, reported a 21% increase in its client base in Q3 2024, reaching 91,600 customers. Revenues soared by 71% year-over-year to PLN 145.1 million, driven by demand for innovative communication technologies like Rich Communication Services (RCS). Partnerships with major brands such as LPP, Media Expert, and Jeronimo Martins further bolstered its position in over 40 countries.
Similarly, Booksy continued its international expansion in the beauty and wellness sector. With a growing user base and new features like virtual gift cards and direct product ordering, the company cemented its leadership. A significant milestone was the investment from Canada’s Inovia Capital, a fund managing over $2.2 billion in assets.
Eleven Labs, an AI-driven voice synthesis company, also made waves. Its generative AI tools, capable of creating natural-sounding synthetic voices and AI dubbing, have been adopted by industries such as film, gaming, and education. With €73 million raised in Series B funding, Eleven Labs became Europe’s first generative AI unicorn. Clients include 41% of Fortune 500 companies, including The Washington Post and Storytel.
Poland’s Expanding IT Footprint
Polish companies like Asseco, which serves banks and public institutions across multiple countries, exemplify the international reach of the country’s IT sector. With 80% of its revenue generated abroad, Asseco plays a vital role in global digital infrastructure.
“The dynamic growth of Poland’s IT market and its expansion into international markets is part of a broader evolution in Europe’s digital ecosystem. Poland has successfully leveraged the decentralization of talent, capital, and know-how to position itself as a key player. Today, we all benefit from this progress,” concludes Łukasz Czechowski, CEO of People Trust.
Source: Manager Plus
