IBM Consulting, formerly IBM Global Business Services, will acquire Dialexa, a product engineering services (PES) vendor headquartered in Dallas, TX.
Etteplan To Acquire Semcon to Gain Scale Etteplan, the ER&D services vendor headquartered in Espoo, Finland,
New Ricardo CEO Reshuffled its Strategy Ricardo announced a new strategy and priorities under its new
Cyient made its largest acquisition ever with Citec. Citec is headquartered in Vasa, Finland. The company provides primarily power plant engineering services.
Bertrandt announced its first acquisition in years: Philotech will help the firm to (modestly) shift its portfolio. The company had an estimated EUR40m in revenues and is headquartered in Taufkirchenn, close to Munich, Germany.
Semcon To Spin Off Product Information (PI) Semcon will spin off its Product Information (PI) unit and
mployees from the other five divisions. It has approximately a revenue of SEK 1bn (USD 110m) and 800 employees. AFRY is gradually ramping up its digital investments and expects to spend SEK 100m in 2022, up from SEK 50m in Q1-Q3 2021.
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Modis came into the light two weeks ago when Adecco announced the acquisition of Akka. Modis is a decently large IT services firm with 2020 revenues of EUR 2,179m. It is little-profitable with an adjusted EBITA margin of 5.7% (2019: 6.3%). Like everyone, the company faced headwinds in 2020, with revenues down 9% in 2020 (2019: -3%).
Sweco had a relatively mild financial performance in Q2 2021 with a 2% yoy growth at cc/cs to SEK 5,643m (USD 649m). The company did not benefit from favorable comps (Q2 2020: +2% yoy at cc/cs). Sweco suffered from its lower utilization rate and headcount
Accenture made a big move with the acquisition of Umlaut, an ER&D vendor headquartered in Germany. The transaction comes as a surprise: umlaut brings EUR 350m in revenues. It is the first sizable acquisition that Accenture made for Industry X. Up to now
ER&D vendors continue to be very active in M&As, with many tuck-in acquisitions. AFRY is now in full acquisition mode with six transactions in 2021 YTD. Competitor Sweco has also accelerated with four transactions. Accenture has made an unusual transaction by taking over a manufacturer of industrial automation and robots in Brazil for Accenture Industry X. Finally, Cognizant acquired a significant German automotive ER&D vendor, ESG.
AFRY recently unveiled its strategy: the company plans to become more integrated and positioned around digital technologies and sustainability. AFRY has suffered in the past few years of a lack of organic growth. In 2019, right before the pandemic, the company grew organically by 1.9%, underperforming most competitors. Then came 2020, and AFRY handled the crisis well, with an organic decline of only 6.4%
Assystem is betting on the long-term with its 99% acquisition of an Indian engineering firm, STUP Consultants. STUP is headquartered in Mumbai, had revenues of approximately EUR 20m and a headcount of 1.1k. It provides transport infrastructure engineering services, mostly around highways, railways, metros, and airports. The company is also present in water treatment and energy engineering.
French ER&D service vendor, Segula Technologies, acquired the automotive unit of Safran Engineering Services in Valladolid, Spain. The acquired unit is small (with a headcount of 81 engineers). It mostly services Renault.
In the past three years, Cognizant has been building Softvision as a new EPAM. Like EPAM, Softvision has grown very fast: Softvision 10-12k employees currently, from 2.8k employees at the time of its acquisition in late 2018.
Jacobs surprised us with its intention to acquire a 65% stake in PA Consulting for USD 1.8bn (enterprise value of the stake). For those of us that have been in the industry, we know that consulting acquisitions can be risky. Think of EDS and AT Kearney, Capgemini and Ernst & Young Consulting, or IBM and PwC Consulting.
Globallogics made an acquisition in IT services with ECS. ECS brings precious digital capabilities including cloud and agile/DevOps.
Accenture made another acquisition for its Industry X unit. Salt Solutions is based in Würzburg, 80 miles away from Frankfurt, in Germany. It, also, has offices in Stuttgart, Dresden, and Munich. Salt is SAP-centric with a specialization in SCM and also capabilities around production systems, all around SAP.
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.
Accenture made a rare acquisition in PLM services for its Industry X.0 unit. The company is to acquire a Torino-headquartered PTC partner, PLM Systems. PLM Systems is a small firm and has 30 consultants
Accenture made another acquisition for its Industry X.0 unit. The newly acquired firm is Callisto Integration, an industrial IT specialist that is headquartered in Oakville, Ontario.
The media have reported numerous examples of volunteers, globally, producing missing equipment, mostly protective masks, for health care professionals exposed to the COVID-19 disease.