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.

UPDATED: Bertrandt Ends its FY19 with a Low Point

/ December 12, 2019

Bertrandt had a mixed Q4 FY19 performance with revenues up 2.6% and an EBIT margin of 5.2% (down 330 bps). For the full year, revenues reached EUR 1,060m, up 3,8%, within the guidance range the company had provided (EUR 1,041-1,071m).

Poland Continues to Shine at SII in H1 FY20

/ December 12, 2019

SII improved its profitability in H1 FY20 despite its reorganization
investments. Its adjusted operating margin was up by 30 bps to 7.2%. France’s margin remained low to 5.6%, improving slightly by 20 bps.

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.

Capgemini’s Acquisition of Altran Delayed by Elliott by Up to Five Months

/ November 28, 2019

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.

ÅF Pöyry Changes Its Brand to AFRY

/ November 27, 2019

Swedish ER&D service vendor ÅF Pöyry changed its brand to AFRY, the amalgamation of ÅF and pöyRY. Meanwhile, its legal name will remain ÅF Pöyry.

Thoughts About HCL Tech’s Performance in Q2 FY20

/ November 9, 2019

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.

ÅF Pöyry Suffers from The Economic Conditions in Q3 2019

/ October 30, 2019

ÅF Pöyry’s revenue growth (yoy, at CC/CS) continued to decelerate this quarter, declining from +8% in Q1 to +1% in Q3 2019, despite the positive impact of an additional working day (+90 bps on revenue growth during the quarter). The company suffered from the same issues as in Q2: a slowdown in the automotive sector from its largest automotive client, (impacting Industrial & Digital Solutions Division) and delayed decision-making in the Infrastructure Division in Denmark.

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.

Wipro Expecting An Acceleration in E&IS from Q3 Onward

/ October 19, 2019

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.

Alten: simply impressive!

/ September 22, 2019

The performance of Alten remained impressive in H1 2019: revenues were up 16.8% yoy at CC, and up 12.5% at CC/CS, reaching EUR 1,292m during the period.