We got a glimpse of the performance of Altran when Capgemini announced its H1 2020 results
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.
Renault is considering R&D outsourcing to save EUR 100-200m annually. The company currently works with approximately 15 ER&D vendors and wants to reduce its number of preferred partners to five.
During the crisis, PSA more than doubled the number of employees WaH from 18,000 concurrent connections to its IT to 38,000.
The Aerospace Industry’s Outlook Has Changed in Less Than Two Months We now have visibility on
The Stock Market meltdown resulted in an unexpected outcome: Capgemini secured 98.2% of the shares of Altran, with investors rushing to get EUR 14.5 per Altran share. Capgemini will now launch a squeeze-out procedure.
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Altran’s organic growth slowed down to +3.3% yoy in Q4. The company suffered from two main effects: Brexit delaying decision-making in the UK and deteriorating market conditions in the German automotive market. As a result, Altran’s North Europe and Central Europe business units were down by respectively 9.6% and 8.4% yoy in Q4.
Capgemini has succeeded with its offer to purchase Altran. The company has secured 53.4% of Altran’s capital. According to France’s financial market’s authority, Capgemini will reopen the tend offer from January 28 to February 10.
Capgemini modestly increased its tender offer for Altran by 3.6%, from €14.0 to €14.5 per share.
The Paris Court of Appeals rejected this morning ADAM’s request for suspension of the Capgemini tender offer for Altran’s shares.
Despite regular announcements that Elliott has increased its long positions on Altran’s shares, Altran’s share has been trading in the range of €14.08-14.20, close to Capgemini’s €14 offer. And since the announcement of the take-over, Altran’s share has not gone beyond €14.78.
Capgemini’s acquisition of Altran will be delayed by up to six months. Edge Fund Elliott has, through intermediaries, brought, the case to court. The initial ruling on December 4 will decide if the acquisition will be suspended. A final ruling will occur by end of the March at the latest.
Altran’s CC/CS revenue growth in Q3 2019 reached +6.0%, to EUR 779m. The company slowed down somewhat from Q1: +8.1%, and Q2: +6.8%, despite the improvement in its operations in North America.
Finexi, an independent firm appointed by Altran to examine Capgemini’s proposal to acquire Altran for EUR 14 per share, concluded that Capgemini’s offer is “fair”.
We eagerly awaited the earnings from Altran in H1 2019 to understand if Aricent would resume growth, as guided by Altran.
Capgemini’s proposition of Altran for EUR 14 per share is getting more complicated.
Still aiming to take control of Altran, Capgemini is open to show flexibility in its ownership structure. The company targets at least 50.1% of the shares of Altran and will accommodate large minority shareholders.
NelsonHall has posted an analysis of the Capgemini acquisition of Altran. NelsonHall is taking a Capgemini and IT services perspective, whereas, in this blog, we have made comments with our ER&D lenses. Enjoy.
We continue to reflect on Capgemini’s acquisition of Altran.
Capgemini is to acquire Altran, for €5.0bn, including €3.6bn in cash and Altran’s net debt of €1.4bn (gross debt of €1.8bn). The company has already secured the 11% stake in Altran that Apax Partners holds and will rely on the financing, on its €1bn cash position and a €4.4bn bond issue.
Altran provided some light on January 24, 2019, cyber attack that affected its operations in several countries in Europe. The company isolated malware and avoided its contamination and propagation to clients. Altran’s systems are now up and running.
Altran achieved in Q1 2019 a CC/CS growth yoy of 8.1% despite the impact of the decline in revenues of Aricent (-2% at CC/CS) and its cyber-attack (impacting the revenue growth of Altran by 200 bps).
Altran has phased out the Aricent brand in North America and now trades under the Altran brand. The company highlights it now has three primary brands: Aricent for its core ER&D services, Cambridge Consultants for its “innovation consulting” capabilities, and Frog for product design
We are now entering the season for Q1 earnings, and as always we will look into changes in major trends. The state of the automotive industry will be an area we will be closely monitoring.