NNIT Shows A Path to Growth in Pharma

/ November 11, 2020

We rarely talked about Denmark-based NNIT. The company is the former IT captive of Danish pharmaceutical firm Novo Nordisk, thus the name NNIT, which stands for Novo Nordisk IT.

Sweco: All Options Open for Significant M&As

/ October 27, 2020

We think Sweco has all options open for significant M&A activity. It has been five years since Sweco acquired Grontmij, bringing 6,000 employees and revenues of EUR 659m.

Wipro Acquires A Semiconductor Engineering Specialist

/ October 15, 2020

Wipro joined many competitors in acquiring a semiconductor engineering specialist. ER&D service vendors are rushing into this market, attracted by its long-term growth potential. Indeed, we estimate to ten the number of semi-conductor M&As since 2015. Altran, through the Aricent, GlobalEdge, and SciConTech transactions, has been the most acquisitive. However, all the industry’s brand names have been active, e.g., Tech Mahindra, HCL Tech, Alten, LTTS, and Cyient.

Accenture Strengthens Industry X in Supply Chain

/ October 7, 2020

Accenture made another acquisition for Industry X. The new firm acquired by Accenture is named Myrtle Consulting and is headquartered in Houston, TX. We estimate its headcount to below 200. It is a consultancy firm.

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.

Cyient Acquires An Onshore Mining Consulting Unit in Australia

/ August 31, 2020

Cyient is to acquire Melbourne-based Integrated Global Partners (IG Partners) for AUD 12m in cash (USD 9m) + earn-outs. IG Partners is a mining business and organizational consulting firm. The company has a specialty in enterprise asset management. It had in FY20 revenues of AUD 15m (USD 11m) and a headcount of 40.

Ricardo Exits the Automotive Engine Testing Business

/ June 16, 2020

Ricardo divested, as expected, its engine testing and prototype facility in Belleville, MI. The company had looked for a buyer for more than one year and even bought the property to make the sale of the facility easier.

Tuck-In Acquisitions Continue Despite the Stock Markets Melt-Down

/ March 11, 2020

Despite the stock market melt-down, ER&D vendors have continued to make tuck-in acquisitions in the past two weeks. The acquired firms were of small size and not likely to impact the net debt of their new owners. However, should the Covid-19-China-US trade-war-Stock Markets meltdown-oil price crisis degenerate into a recession, we expect suck tuck-in acquisitions to become scarce.

What An Economic Recession Means to the ER&D Industry

/ March 4, 2020

The US Federal Reserve yesterday lowered “the target range for the federal funds” by 50 bps to 1%-1.25%. Although the “fundamentals of the US economy remain strong,” “the coronavirus poses evolving risks to economic activity,” communicated the Fed.

Belcan Acquires in Software Engineering

/ December 13, 2019

Belcan strengthened its software engineering capabilities with the acquisition of Base2 Solutions, a firm headquartered in Bellevue, WA and with an office in California. Base2 has a similar client base to Belcan, with major clients including Boeing, Thales, and L3Harris in aerospace and defense.

Accenture Acquires Two Firms in October YTD

/ October 20, 2019

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.