Globallogic Acquires in Digital and IT Services

/ November 29, 2020/ Agile and DevOps, Cloud computing, Digital, Financial services, GlobalLogic, IT services, M&A (large, with revenues above $50m), UK

Globallogic Expands to IT Services with ECS

Globallogic made a significant change in its M&As strategy with the acquisition of ECS. ECS brings precious digital skills, mostly around cloud computing and agile software development methodologies, and DevOps tools. The company has multiple Amazon Web Services (AWS) accreditations.

With ECS, Globallogic has expanded from ER&D activities to IT services. ECS, indeed, brings a client base in banking and financial services. We are guessing that Globallogic will use ECS as one of its AWS and cloud CoEs, targeting its high-tech and other manufacturing clients.

ER&D Vendors Are Buying into Digital

The move follows Alten’s acquisition of a data analytics firm, SDG Group. The current pandemic and economic crisis are forcing ER&D vendors to bring beyond their traditional sector approach and target digital capabilities. Because digital sits very much in the IT services space, ER&D vendors are now openly expanding to non-manufacturing and non-high-tech industries.

While we may see cloud acquisitions such as ECS, we think ER&D vendors will focus mostly on data and analytics, digital manufacturing, OT security, and to some extent UX.

Europe Remains the Priority

Globallogic continues to grow organically fast. Moody’s reported that the company has in FY20 (the year ending June 30, 2020) revenues of USD 794m. The company continues to benefit from serving the US high-tech industry. It has made Europe a priority of its international expansion, with the recent acquisition and the appointment of a European head.

Globallogics seems to be doing very well in terms of profitability. Moody’s recently reported during the summer Globalogic had issued a very significant USD 525m debt to finance a USD 475m dividend. Partners Group and Canadian Pension Plan Investment Board must be happy shareholders!

Table: Recent Globallogic Acquisitions

Acquired Firm
London, UK
H2 20220
650 employeesBrings expertise around agile and DevOps, cloud, and analytics.
An AWS partner
Service the banking and financial services industries
Meelogic Consulting
Berlin, Germany
H1 2020
Est. 100 employeesBrings nearshore centers in Szczecin and Bydgoszcz, Poland.
Services the healthcare and automotive markets
Gothenburg, Sweden
H2 2019
60 employeesServices the automotive, IT, and aerospace sectors
Specialized in in-vehicle electronics, HMI, infotainment systems, active and safety systems
Charlotte, NC
H2 2019
Est. 50 employeesComplements the geographical presence of Method (currently in San Jose, New York, and London)
REC Global
H1 2016
500 employeesBrings embedded software skills and other software services.
Sevices the automotive, telecom, and industrial automation industries for their IoT, chipset software, and HMI needs
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