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.
Tech Mahindra made a surprise move in semiconductor engineering services. The company is to acquire Cerium
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.
Wipro announced a mild growth in the revenues of its Industrial and Engineering (I&E) business unit in Q3 FY20: I&E revenues were up by 3.1% only (to USD 151m). Revenues included a small contribution from the recent ITI acquisition and were impacted by the market conditions in the semiconductor industry and softness in 5G adoption.
Capgemini modestly increased its tender offer for Altran by 3.6%, from €14.0 to €14.5 per share.
NelsonHall has published a new blog about how Accenture, through Industry X.0, is not only targeting product design and engineering opportunities but also digital manufacturing.
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.
HCL Tech’s ERS accelerated its yoy growth in Q2 FY20 to +15.0% at CC, from +13.3%. Its EBIT margin also increased from 16.0% in Q1 to 21.4% in Q2. The financial improvement results from mostly a catch-up effect: ERS recognized revenues in Q2 that it could not in Q1.
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.
It has been almost three years since Accenture launched Industry X.0, and we estimate that Accenture acquired nine competitors in these 36 months. The pace is accelerating with Accenture having five competitors in 2019, YTD.
During its Q2 FY20 earnings call, Wipro provided some light about the performance of its Industrial & Engineering Services (E&IS) unit.
It is not so long ago that Wipro was corporate India’s strongest name for ER&D services, mostly servicing clients in the network equipment provider industry and also semiconductor manufacturers.
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Last year, we had commented about Accenture’s ambitions in the ER&D space, through its Industry X.0 unit.
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”.
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You may have noticed we had not reported HCL Tech’s Q1 FY20 earnings. HCL has changed the way its reports its segments.
We eagerly awaited the earnings from Altran in H1 2019 to understand if Aricent would resume growth, as guided by Altran.
HCL Tech, ÅF, and Belcan have announced tuck-in acquisitions in the past week.
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.
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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.
HCL Tech has closed the acquisition of several IBM products. The company has now ownership of AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager), Notes Domino, and Unica. We assume the price of the transaction has not changed and still is USD 1.8bn.