Consultancy.nl spoke with Rik Stikkelbroeck, founding partner at Hogenhouck M&A, about the ongoing consolidation in the managed services provider market. In the interview, he discusses the role of economies of scale, regulation, private equity, and the outlook for 2026.
This isn't the first time you've mentioned that consolidation in the MSP sector is picking up speed. What's the story there?
“That’s right; this trend has been evident in the MSP sector for years. The successive phases of consolidation are, in fact, occurring in parallel with the market’s ongoing professionalization. At the same time, we’re seeing more and more sectors turning to managed services, which further reinforces this dynamic.”
“The IT market has undergone tremendous growth on an international scale. The transition to cloud solutions has taken place at a rapid pace. The Netherlands is known for its high rate of adoption, and trends such as ‘verSaaSing’ and ‘cloudification’ have only accelerated this trend.”
“Many companies that were previously hardware-focused have successfully adapted their business models: they now provide services and rely on recurring revenue streams as their foundation.”
What factors are driving the need for MSPs to scale up?
“The reasons are varied. On the one hand, there is the increasing complexity in the areas of technology and laws and regulations—such as certifications and regulations likeNIS2. For smaller MSPs, it is becoming increasingly difficult to bear the necessary investments in processes, certifications, and security measures. These burdens weigh relatively more heavily on smaller organizations than on larger players.”
“In addition, macroeconomic developments play a role. Major technology companies such as Microsoft, Amazon Web Services, Cisco, and Google are taking on an increasingly dominant role within the ecosystem, which is gradually limiting the room for maneuver of local providers.”
“Take Microsoft as an example: the company holds a dominant position in the MSP market in the Netherlands and is imposing increasingly stringent requirements on its partners. For instance, partners must generate a minimum revenue of approximately $1 million to maintain their status. Within the Microsoft ecosystem, this naturally leads to a shift toward economies of scale at the lower end of the market.”
“Together, these factors have led to a marked acceleration in the wave of consolidation. While there were still about five acquisitions per quarter in 2022, that pace has now risen to about six transactions per month in 2026.”
How can the increased interest of financial investors in MSP parties be explained?
“MSP companies are characterized by a high proportion of recurring revenue, a strong integration into clients’ operations—often mission-critical—and relatively low churn. This makes these companies particularly attractive as acquisition targets and positions them as a stable investment.”
“In addition, macroeconomic conditions played an important role. Demand for MSP services grew strongly against the backdrop of a rapidly expanding IT sector. At the same time, financing conditions remained very favorable for a long time, with historically low interest rates and ample available capital (‘dry powder’).”
“As a result, investment platforms such as Your.Cloud/Strikwerda, Techone/KKR, Hallo/Klar, Smizer/Riverdam, FutureProof/MKB Fonds, Yielder/Capital A, and Esprit/Avedon were able to secure funding relatively easily and actively invest in the sector.”
When it comes to deals, the focus is often on hard metrics such as recurring revenue, profitability, and growth potential. What else should buyers look for?
“To get a complete picture of a company’s value and its strategic fit with a buyer, soft factors are also essential. These include the company’s reputation in the market, the quality of its management, its brand and positioning, the robustness of its operations, the expertise of its employees, and its corporate culture.”
“The ability to respond to changes in the market is also crucial—in the fast-growing IT services sector, agility is a key competency.”
What are your expectations for the MSP market in the coming years?
“Our recent research atHogenhouck M&Ashows that the number of acquisitions in the MSP marketis expectedto remain high in 2026 as well. Despite geopolitical uncertainty, demand for digitalization, cloud solutions, and cybersecurity continues to grow.”
“Organizations are increasingly outsourcing their IT management to specialized providers. Complete peace of mind, maximum security, and high availability are the key priorities in this regard.”
What is Hogenhouck M&A’s role in advising on MSP acquisitions?
“At Hogenhouck M&A, we primarily work for entrepreneurs. We represent the interests of MSPs that are joining forces with a larger industry peer or a private equity platform. MSP is one of our firm’s core areas of expertise—more than 100 of the transactions we have advised on since our founding in 2007 have involved managed services.”
“Examples include the buy-and-build strategy of Infotheek Group—later CentralPoint—and our support for transactions involving companies such as Motion10, Wortell, DataByte, Extravar, OfficeGrip, and Constant IT. We also recently advised the owner of Duvak ICT.”
“Our role is to advise entrepreneurs from start to finish and take the pressure off them. For many entrepreneurs, closing a deal is a once-in-a-lifetime moment. That requires not only substantive knowledge, experience, and market insight, but above all a deep understanding of the entrepreneur’s personal goals.”
“Collaboration and the process we go through together are central to this. Taking the time to ensure quality and carefully determining when and with whom to take the right steps—not rushing to the finish line, but making truly well-considered choices—all of this, in our view, is key to a successful transaction.”
