This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The Asseco Group is expanding its presence in cloud computing, cybersecurity, and defense-sector solutions. It aims to leverage its experience from Israel. The company is already executing its first defense projects in Poland and is evaluating further acquisitions. However, structural barriers make broader cooperation between private firms and the national administration in this sector challenging.
Asseco, a software provider for the financial sector, public administration, and enterprises, is focused on developing its cloud capabilities, products, and services. The group has identified growing demand for systems addressing cybersecurity and national security.
“From our perspective, the defense area – linked to national security and providing software for the defense sector – is extremely interesting. We would like to transfer our experience from the Israeli market, particularly in cybersecurity, to the domestic arena. In Israel, we operate through acquired local companies, and in Poland, we are also implementing our first defense contracts, though on a still modest scale. We are considering both organic business growth in this area and acquisitions. We are looking at purchasing companies that could enable broader market consolidation in Poland in the future. There are several firms in Poland with significant technological and business potential,” says Rafał Kozłowski, Vice President of Asseco Poland and President of Asseco Enterprise Solutions.
Defense is challenging for private firms
In recent years, the need to strengthen defense systems – both territorial and cyber – has grown significantly. Worldwide, including in Poland, investment in this area is increasing.
“The growth prospects for the market are substantial. However, securing contracts in Poland is not easy. The problem is that the state still lacks a clear strategy and definition of whether, in the defense sector, public administration prefers to operate independently, exclusively with state-owned companies, or with the support of external firms. As a result, Poland does not yet have a well-developed public procurement structure in this area,” says Rafał Kozłowski.
According to Kozłowski, long-term cooperation with external companies and the market could prove more effective for the state.
“Until Poland develops a working model for collaboration with the market, successes in implementing IT systems for defense will be limited. Nonetheless, Asseco is ready. Within the group, we have the know-how, specialized engineers, and experience from Israel, where the pathways for state-market collaboration are well established and procedures thoroughly tested,” he adds.
Business perspective
The specifics of public procurement in defense
At the same time, there is real demand for specialized skills from private firms. This includes SOC services and monitoring, incident response, security testing, vulnerability management, system maintenance, data and analytics integration, as well as training and exercises that enhance operational readiness. The greatest challenge lies in procurements covering comprehensive solutions – from architecture and implementation to maintenance and further development. In such cases, large integrators hold the advantage, while smaller companies typically participate as consortium members or subcontractors.
Looking at procurement strategies, there is a visible tension between procedural security and the pace of the digital environment. Large, centralized tenders limit the risk of dispersed responsibility, but the rapid evolution of cyberspace requires greater flexibility. For this reason, phased models, shorter implementation cycles, and contracts that cover not only deployment but also ongoing maintenance and regular system testing better meet contemporary needs for resilience and operational readiness.
Asseco leverages its experience from Israel
Rafał Kozłowski notes that Asseco is an IT systems provider for NATO and Frontex. The group supplies systems for analyzing visual and imagery data related to territorial defense, management of field units, and threat identification. Asseco’s Israeli subsidiaries support, both in products and services, the operation of the Iron Dome air defense system.
In Poland, Asseco plans to develop its cybersecurity and defense business through both organic growth and acquisitions.
“The acquisition potential is significant. We see several companies that could be integrated into the Asseco Group, and there are also firms interested in operating under our model. I cannot disclose negotiation details, but we are particularly interested in entities whose acquisition would accelerate sector consolidation,” explains Mr. Kozłowski.
In cybersecurity, Asseco follows a dual approach: strengthening the security of its own IT systems while delivering solutions for clients.
Expert's perspective
Global declines in technology company valuations
From Poland’s perspective, however, the picture is surprisingly positive. Polish technology companies are growing dynamically and remain an attractive target for both financial and strategic investors. At the same time, the transactional landscape is evolving. For years, service companies – including software houses without their own IP – dominated the market. Today, investors in this segment are far more selective. The strongest performers are service firms with clear specialization, stable margins, and long-term client relationships, particularly in areas such as cybersecurity and managed services.
Product companies, including SaaS providers offering global solutions developed from Poland, are increasingly coming to the fore. This represents a qualitative shift, materially improving scalability and resilience. Other rapidly growing areas include HR tech, public tech, and specialized niches such as industry-specific ERP systems and BPM solutions.
In practically every M&A process, the impact of AI on a company’s future is a central topic in discussions between founders and investors. AI presents both a challenge and a major opportunity. For companies relying solely on human labor, it creates cost pressure and margin erosion risk. By contrast, firms with their own products, data, and technological capabilities can adopt new solutions faster and build sustainable competitive advantage.
The Polish IT market remains in strong shape and is becoming increasingly attractive, especially to foreign investors. For founders, this represents a real opportunity for an exit or for raising capital to fund further growth. Companies offering solutions critical to their clients’ operations, enjoying strong user loyalty and generating stable, recurring revenues, can still expect very attractive valuations. Poland is steadily evolving from an outsourcing center into a product and innovation hub. The years 2026–2027 promise to be particularly rich in M&A activity in the technology sector.
Between organic growth and acquisitions
Asseco aims to strengthen its own market advisory capabilities. The company also plans to acquire firms that can help enterprises enhance their IT security.
“Asseco grows largely through acquisitions, and we are constantly looking for new companies on the market. We pursue transactions only when we see clear synergies and growth potential. There is no external pressure driving these decisions,” emphasizes Rafał Kozłowski.
Additionally, Asseco will expand its competencies and sales capabilities as a provider of cloud solutions and technologies, primarily through Asseco Cloud.
“The differences in approach to cloud adoption or in the level of cloud implementation are not dramatic when comparing countries. They are more noticeable at the sectoral level. The potential of cloud technologies is enormous, which is why we want to strengthen our position as a local provider. That said, implementing new systems in companies or organizations must align with their actual needs and deliver tangible benefits. Technological ‘hype’ is not the best advisor in this case,” Mr. Kozłowski notes.
Expert's perspective
Asseco under investors’ watch
Contrary to market consensus, I believe Asseco Poland remains attractively valued. The company’s valuation increased significantly after entering into cooperation with Constellation Software, now its largest shareholder. This partnership, in my view, should be a key driver of Asseco’s future business growth. Constellation Software invests in global software companies and, as an active investor, improves their profitability and return on capital even in the short term. This observation is based on other publicly listed Constellation Software portfolio companies, such as TruBridge and Sygnity.
He adds that the current geopolitical situation and volatile market conditions may be holding many entrepreneurs back from making long-term technology investments.
“Companies that are winning in today’s market understand that business growth now comes through advanced technologies and automation. Investment is therefore essential, regardless of the circumstances,” emphasizes Rafał Kozłowski.
Key Takeaways
- Combining organic growth with strategic acquisitions. The company plans to continue combining organic growth with acquisitions, with decisions driven by synergy and consolidation potential rather than market pressure. Simultaneously, Asseco is expanding its cloud services through Asseco Cloud, emphasizing the need to tailor implementations to clients’ real requirements.
- Asseco sees growing demand for national security systems. This is driven by geopolitical tensions and rising government defense spending. In Poland, the company is executing its first contracts in this area and is considering both organic growth and acquisitions of companies with high technological potential. Asseco leverages its experience from Israel as well as projects delivered for NATO and Frontex.
- The specifics of defense public procurement. Public procurement in defense remains demanding for the private sector. Contract awards are determined not only by price and capabilities, but also by trust, organizational maturity, and the ability to work with sensitive information. Poland still lacks a clear model for state collaboration with technology firms, which complicates IT project delivery in the defense sector. At the same time, demand for specialized cybersecurity services is increasing, and the largest tenders favor major integrators.