mps public solutions strengthens the MACH Group

Funds advised by Main Capital Partners will continue holding a majority stake in the business combination. Together, MACH and mps are committed to developing and launching the next generation of financial administration software for public services and adjacent industries. This announcement underlines Main’s investment strategy of uniting leading software companies into larger, synergistic groups with expansive market reach.

MACH is recognized for its innovative financial management software, serving federal, federal state, and municipal levels of German public administration, as well as semi-public organizations, including universities, churches, and NGOs. Since Main’s investment in MACH in 2020, the company has significantly grown organically and through strategic acquisitions of Data-Plan (2021), Form-Solutions (2022), and Bildbau (2023). These acquisitions have broadened MACH’s suite of financial administration as well as AI-supported application and process management software, enhancing its ability to meet the evolving demands of public administration.

mps has grown into one of the leading software specialists for finance and accounting solutions in public administration with a turnover of around 25 million euros and 2,600 customers. From financial management to building yard and cemetery management – mps’ extensive range of software is primarily aimed at municipalities and districts as well as the social economy. The customer base includes municipalities, districts, social and healthcare facilities, public utilities and churches. In total, around 180 employees support more than 1,200 public institutions throughout Germany.

Creating a Leader in GovTech
This combination underscores Main’s dedication to building larger, industry-leading software groups within certain focus markets like the GovTech market. With this strategic merger, MACH and mps together form a market leader in financial administration software for the (semi-)public sector. This new partnership will drive the joint development of the next-generation financial administration software for public services and provide customers with an expanded suite of innovative solutions. Collectively, the combined group will generate more than 75 million euros in revenue and employ more than 600 employees to serve more than 4,000 municipal customers across the German public and semi-public industries. Major reference clients include the Bundesverwaltungsamt (Federal Office of Administration), Bundesland Saarland (Federal State of Saarland) as well as the cities of Munich and Bonn.

As part of the merger, mps CEO Dr. Tino Wagner will step down and be succeeded by longstanding company executive Bernd Schlayer.

Matthias Kohlhardt, CEO of MACH Group mentioned: “We are delighted that our journey as a group of digitalization specialists under the umbrella of the MACH brand is reaching the next stage. The many years of experience and expertise of mps will expand and enrich our offering for local authorities.”

“Over the next few months, we will continue to develop our product portfolio together and make it fit for the future. In addition to futureproofing and reliability, our focus is on new developments,” explains Bernd Schlayer, Managing Director of mps public solutions, and emphasizes: ”We want to identify and exploit opportunities together at an early stage. Our customers and partners have top priority. We want to take everyone with us on this joint journey.”

“The combination of MACH and mps marks a milestone in the growth strategy of both organizations.” said Sven van Berge, Managing Partner at Main Capital Partners. “By bringing together the complementary strengths of MACH and mps, we are creating a leading provider in the German GovTech sector. For over 20 years, Main has stayed true to an investment approach that emphasizes creating value by building larger, innovative, profitable and sustainable software groups with expansive, high-quality product offerings that meet clients’ evolving needs. This synergistic business combination of MACH and mps is an excellent example for our investment strategy”.

“The pressure on administrations has grown steadily in recent years. More and more tasks must be completed with fewer and fewer staff and ever tighter budgets. This is where MACH solutions come into play and create real relief through holistic digital and automated processes! As a group of companies, we are increasingly growing into a network that offers public institutions in Germany efficient standard software for financial, application and process management from a single source,” explains Kohlhardt.