Birth of Assystem Tech. Bold Ambitions
Assystem has completed the sale of a 60% stake of its GPS business to Ardian, keeping 40% in GPS. GPS has been renamed Assystem Technologies, and will be headed by the former CFO of Altran, Olivier Aldrin.
Assystem Technologies had in 2016 revenues of EUR 578m and has a headcount of 9k.
Under the ownership of Ardian, Assystem Technologies has bold financial targets: it wants to grow through M&As, targeting €1bn in sales quickly, and €1.5bn by 2022, with German automotive as a key priority. The company also wants to improve its adjusted operating margin of 7% towards 10%.
The former GPS has suffered in years, like Assystem overall, from under-performing in terms of profitability, and as a result, has not had the financial resources, to consolidate the market, as fast as the other 3As have. Ardian will provide the financial resources to make those acquisitions happen, while we are expecting CEO Aldrin, to use its Altran experience in managing more closely the costs of Assystem Tech, and in integrating new firms.
In spite of Mr. Aldrin experience, we think the financial targets are bold. The good news is that the the conditions of the ER&D market in which Assystem Tech operates are very favorable, with high visibility in Assystem Tech’s two key markets: aerospace and automotive.