Unofficial: Renault Selects its Four ER&D Preferred Vendors

/ July 24, 2020

According to unofficial sources, Renault has now finalized its list of preferred ER&D service vendors, reducing it from nine vendors to four. The four winners are Akka, Bertrandt, Expleo, and Segula. They will now grab 80% of Renault’s ER&D spending and double their market shares.

Akka Launches a Mandatory Offer for Data Respons

/ March 10, 2020

Akka has launched a mandatory offer for Data Respons (DR) that will provide shareholders the opportunity to sell their DR shares. The company has been active on the stock markets since the end of its tender offer on February 13, raising its stake from 72.9% to 78.1%. Akka is hoping to reach 95% of shares and launch a squeeze-out offer later one.

Akka Secures 64% of Data Respons’ Stock

/ February 12, 2020

After its unexpected revenue growth slowdown in Q4, Akka suffered from a disappointing result: it secured only 64% of the shares of Data Repons. Akka has received regulatory clearance from the German cartel office authority, so now has control over Data Response.

Akka Raises EUR 175m in Convertible Bonds. But Why?

/ November 28, 2019

We don’t usually comment on the financial performance of ER&D service vendors beyond their financials. But this time, this is a little bit different: Akka Technologies raised yesterday EUR 175m in convertible bonds, a significant amount for Akka, which has a market cap of EUR ~EUR 1.2bn.

Akka sends mixed signals in Q2

/ August 8, 2019

Akka surprised investors with a CC/CS revenue growth slowdown in Q2 2019: revenues were up 5.1% yoy at CC (vs. 6.6% in Q1). Utilization declined by 50 bps yoy, and attrition (excluding PDS Tech) was up by a massive 530 bps, to 23.3%.

A few thoughts about Akka’s performance in Q1 2019

/ May 8, 2019

Akka has a somewhat soft financial performance in Q1 2019. The company’s organic (CC/CS) revenue growth reached 6.6%, impacted by a lesser number of working days yoy, a 0.5% sequential decrease in its headcount, and by high attrition (20.8%, up by 230 bps yoy).

2018: A Year in Review

/ January 3, 2019

2018 was an eventful year: the top ER&D vendors accelerated their M&A activities. Alten continued to deploy its business model. HCL Tech’s ERS unit had a superb year