Oct 06, 2017, by Dominique Raviart
In a surprise transaction, Office Depot announced the acquisition of U.S.-based CompuCom, an end-user computer specialist. The price is significant: ~$1bn, including $750m in cash and 45m shares of Office Depot, with the seller, PE Thomas H. Lee Partners, owning 8% of the share of Office Depot. Despite revenues of $10.6bn, Office Depot has a market cap of just ~$2bn.
With the acqu[...]
Apr 18, 2017, by Dominique Raviart
We recently talked to HPE Technology Services (TS) about its recent Pointnext branding campaign. Despite the divestment of its Enterprise Services unit, HPE has retained very significant IT services capabilities, provided through Pointnext. Technology Services is a sizable unit with FY16 revenues of ~$7.9bn (for the period ending 31 October 2016), and has a headcount of 25k across 80 countries[...]
Mar 31, 2016, by Dominique Raviart
In December 2015, we published two blogs about M&A activity in the IT services industry in 2015 (here are the links for Part 1 and Part 2). This blog examines M&A activity in IT services in Q1 2016 and sets our expectations for the rest of this year.
In short, 2016 started off with a bang, with two very large IT services acquisitions announced in the first [...]
Jul 08, 2014, by Dominique Raviart
In the world of IT services, professional services, e.g. consulting, systems integration and application development, are a cyclical business. Spending growth – or decline – depends very much on GDP growth, corporate moral and investment intentions. Professional services growth has varied since on a quarterly basis, since 2008, between -8% to +9%, on a worldwide basis.
IT outsourcin[...]
Apr 08, 2014, by Dominique Raviart
Sopra Group is to acquire Steria for an all-share transaction valuing Steria at €722m. The acquisition is presented as a merger of equals.
Sopra's rationale for the acquisition includes:
Expanding its geographical presence from France to the U.K., Germany and Norway
Gaining a new service portfolio in BPO services and IM.
Sopra is to launch a public exchange [...]
Nov 15, 2013, by Dominique Raviart
Atos has unveiled its Ambitions 2016 plan in whch it has detailed how two of its key service lines (Managed Services and Systems Integration) will evolve over the next three years.
Managed Services
Managed Services (MS) is planning to grow at a 5% 2013-2016 CAGR with a slight organic growth. The unit has stabilized (organic growth 2011: +1.7% ; 2012; +2.4%;[...]