Spain Investments in Technology

Spain Investments in Technology

After a decade-long economic boom driven mainly by the construction and real estate sectors, Spain is now determined to deepen and intensify its productive specialisation in industries that depend on technology and innovation. Therefore the Spanish technology sector might soon be ripe with M&A opportunities.

Information and communications technology, or ICT, now underpins nearly all of the world’s major commercial sectors and Spain has risen to the top in a number of these sectors. Their success rate attracts the eye of foreign investors who are considering joint ventures in Spain.


One of the world’s largest consultancy and technology multinationals is Spain’s very own Indra Sistemas, a leader in Europe and Latin America and already expanding in emerging economies like Asia. Its competitors range from France-based Thales to US powerhouse IBM.

One the forefront of Research and Development and Innovation, Indra ranks second in Europe, having invested over 550 million euros in the last three years. It is leading the field to provide international solutions for needs such as air and road traffic control.

A former state-owned company, it made a successful listing on the Spanish stock exchange in 1999, joining the blue-chip IBEX-35 share index. Its products range from systems for defence and transportation to health, security, ticketing and elections.

Over the last 20 years, Indra has rapidly established a strong international profile. Following in the footsteps of some of its most important customers like Spanish telecommunications firm Telefonica, Indra has successfully grown its footprint in Latin America and Europe. It is now targeting surging infrastructure investments in countries like Brazil, China and Vietnam.


As a rare breed of company which invariably meets its earnings guidance and stock market expectations – even at the peak of the economic crisis – Indra has long been in the sight of industrial investors, particularly from overseas.

Over the last few months, Indra’s future shareholder structure has become a topic of conversation as the fate of nationalised lender Bankia  has played out. Bankia holds a 20 percent stake in Indra, but following a state rescue operation last year, Bankia is now under pressure to raise cash through corporate stake disposals. Last month it sold its 12.1 percent stake in International Airlines Group (IAG), the parent company of British Airways and Spanish flagship carrier Iberia.

IAG was the first large stake to come under the hammer, and the sale to various unnamed institutional investors was earlier than expected. Now all eyes are focused on Indra. Will Bankia sell their shares in this company? And is Spain’s leading IT firm ready to welcome new investors?

For more information on Spain’s technology sector, contact Argali Abogados.

One Comment

  1. […] time, the company can become more competitive because it has more exposure to other areas of technology which can help improve production. Also, in a new market, a company can create a new image for […]

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