Capgemini Betting on Altran To Reach its New 2025 Financial Objectives

/ April 5, 2021

Capgemini unveiled its new financial objectives for the 2020-2025 period, of which Altran will play a significant part. The company now targets a 7 to 9% annual revenue growth at cc and an adjusted EBIT margin of 14% by 2025. Capgemini will reach revenues in the range of EUR 22.2-24.4bn by 2025 (from an estimated pro-forma EUR 16.3bn in 2020) and EUR 3.1-3.4bn in adjusted EBIT (from EUR 1.5bn in 2020).

Nuclear Engineering Remains Promising for Assystem

/ March 17, 2021

Nuclear engineering remains promising for Assystem. Revenues of nuclear engineering proved slightly more resilient during 2020 (with a 4.2% revenue decline at cc/cs) than the company itself (-5.3%). In H1 2020, the activity was impacted by the lockdown in Europe, as nuclear engineering requires a higher level of onsite work than ER&D services. Revenues bounced back in H2, reaching a slight organic growth.

UPDATED: Atos Approaches DXC in a USD 10bn Transaction

/ January 7, 2021

Following a Reuters news release, European IT services vendor Atos confirmed it had submitted to the Board of DXC an unsolicited non-binding offer to acquire the firm. The offer is at a preliminary stage. Reuters estimated Atos’ offer to USD 10bn.

Alten Makes its Largest Acquisition Ever, in Digital

/ November 15, 2020

Alten is to make its largest acquisition, with Milan-headquartered SDG Group. SDG has revenues of EUR 76m and a headcount of 950. Its operating margin is ~10%. We estimate the price paid by Alten to ~EUR 60m.

SII Performed Very Well This Quarter. Really?

/ November 13, 2020

At first glance, SII performed very well during calendar Q3 2020 (corresponding to its Q2 FY21). Revenues were down by only 4.5% yoy at cc/cs. By comparison, Alten’s revenues were down by 19%! SII continued to overperform its French and European peers by a very significant margin.

Europe Has Entered its Second Lockdown. A Look at Financial Implications

/ November 1, 2020

Europe has now entered its second lockdown. The lockdowns have different restrictions levels and different lengths. The UK and France are running for the full month of November. Officials in the two countries have, however, warned the lockdown might last longer, until Christmas at least.

Akka Raises EUR 200m. Share Up 40%

/ October 7, 2020

Akka’s share was up by almost 40% on Tuesday (October 6). The company reassured investors by raising EUR 200 at favorable terms for existing shareholders

Alten Accelerates its M&A Activity

/ September 30, 2020

Alten will accelerate its M&A activity in 2020. This is one of the tactical changes that the company announced during its H1 2020 results presentation. The company is also shifting its commercial effort to financial services, energy, and life science, and slightly accelerating its offshore deployment.

Assystem Bounced Back in June

/ August 29, 2020

As expected, Assystem suffered in Q2 2020: revenues declined by 13.7% yoy CC/CS during the quarter. Staffing was down by 16.3%, while Energy & Infrastructure did somewhat better (-13.3%). The core nuclear engineering business was down by 10.1% (our estimate).

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.

Earnings Preview: Revenues of Alten to Plunge in Q2

/ July 15, 2020

ER&D’s largest pure-play globally, Alten, will be announcing its Q2 2020 revenue by the end of July. The company had a very decent Q1, with a 4% CC/CS revenue growth. However, it warned that revenues would be down by ~22% in Q2.

Expleo’s New CEO: A Perfect Resume and Daunting Challenges

/ July 3, 2020

We just learned that Expleo has a new CEO, Rajesh Krishnamurthy. On paper, Mr. Krishnamurthy, has everything right for Expleo. He is a French citizen of Indian origin. He has held senior roles at Infosys, including one as head of the Energy, Utilities, and Telco division, a major responsibility as Infosys is organized by vertical. He also led Infosys Global Consulting.