Q3 2008 IT Services and BPO Transactions

Carrefour SA acquires Cross Systems Co SA

Carrefour SA, an owner-operator of hypermarkets, supermarkets, convenience stores and hard discount stores located in Europe, will acquire Cross System Company SA, a Paris-based provider of computer engineering services from Micropole-Univers SA.  Cross Systems specializes in e-business application development.

Announcement Date: September 29, 2008
Deal Value: $6.5 Million (for a 98.5% share)

Softline AG acquires Prometheus

Softline AG has acquired 60% of Prometheus GmbH, one of the leading service providers for computer, software and hardware companies and data centers, in Germany. Prometheus has 22 fixed employees and a pool of 2,500 independent IT experts, with revenues of 7.5 Million Euro in 2006. Softline AG is a German company engaged in the sale, marketing and distribution of software products. In addition, it provides information technology (IT) consulting services. The company focuses its activities on the German market and offers its products in four main business areas: eSecurity and eNetworking, eDocument, Digital Media Processing and Productivity Software.

Announcement Date: September 26, 2008
Deal Value: Undisclosed

Bechtle AG acquires Netzwerk Beratung Informationssyteme and Wrede Systemhaus Gmbh

Bechtle AG has acquired Netzwerk Beratung Informationssysteme Duisburg GmbH (nbi - network consulting information systems), based in Duisburg, and the Wrede Systemhaus GmbH, which is headquartered in Meschede with an office in Soest, thus strengthening Bechtle's presence in North Rhine-Westphalia. The IT service and trading company, until now, had ten system houses in the economically strongest federal state.” These market-established and profitable IT system houses enable us to strengthen our position in an attractive economic area. We are delighted to be able to ensure management continuity in both companies and the current managing directors have stayed in their positions,” said Ralf Klenk, chairman of the board of Bechtle AG. Both system houses are active in the traditional IT infrastructure sector.

Announcement Date: September 24, 2008
Deal Value: Undisclosed

Charteris acquires SIG

British business and IT consultancy Charteris Plc has acquired rival SIG Consulting Ltd. SIG is a business consultancy specializing in enterprise resource planning systems. Charteris said this acquisition will greatly enhance the company's capabilities in the fast-growing market for business solutions based on Microsoft Dynamics.

Announcement Date: September 23, 2008
Deal Value: Undisclosed

Zanett to acquire PS GoLive

Zanett, Inc., a consulting firm specializing in business process outsourcing (BPO), IT enabled services, and information technology, is acquiring PS GoLive, a provider of upper-end services for PeopleSoft Enterprise products and business processes. PS GoLive was founded in 2001 to deliver high quality services for Oracle’s PeopleSoft Enterprise products and business processes. Over the past eight years, the company has continued to expand its support of the PeopleSoft Enterprise products and all PeopleSoft Internet and Tools technologies, including SOA and web services. PS GoLive brings some very important PeopleSoft customers to Zanett, which believes that PeopleSoft will continue to dominate the market as a best-in-class ERP solution. This investment on the part of Zanett further signals its commitment to develop world-class Oracle/PeopleSoft capabilities.

Announcement Date: September 22, 2008
Deal Value: Undisclosed

Ciber acquires Iteamic

U.S.-based systems integrator Ciber has agreed to acquire India-based IT services provider Iteamic to expand its Indian operations. Ciber says it has been seeking to add both leadership and scale to its Indian operations for a long time. Iteamic has been in business since 2003 and has an excellent model established for offshore delivery of projects generated from the United States. Iteamic has about 200 employees and expects to do between $7 million and $8 million in revenue in its 2009 fiscal year, which ends in March.

Announcement Date: September 22, 2008
Deal Value: Undisclosed

PricewaterhouseCoopers to acquire Entology

PricewaterhouseCoopers (PwC) LLP is acquiring the assets of Entology, Inc., an enterprise technology solutions consulting firm and the leader in implementing Oracle Identity Management. Entology's team of professionals architect, develop and implement enterprise technology solutions, including identity management, content management, and collaborative business portals. The acquisition includes a group of client service professionals with significant industry, operational and IT expertise. PWC’s acquisition of Entology adds bench strength to its identity management implementation capabilities and significantly enhances its market position in information security consulting. Entology's expertise extends beyond identity management to include content management and related business intelligence solutions, enterprise portals, and application development.

Announcement Date: September 19, 2008
Deal Value: Undisclosed

Providence Equity and Ayala Acquiring eTelecare Global solutions

Providence Equity Partners and Ayala Corp., a Makati City, Philippines-based holding company of diversified businesses, have agreed to acquire business process outsourcer eTelecare Global Solutions, a provider of customer service and technical support to large U.S. corporations like American Express, AT&T, Dell and Sprint.

Announcement Date: September 19, 2008
Deal Value: $290 million
Seller Revenue: $259.9 Million

Telvent acquires DTN

Spanish IT services provider Telvent has acquired U.S.-based DTN Holding Company to strengthen its position in the business information services sector. Telvent said DTN provides information services to the agriculture, energy, and environment industries. Telvent will gain access to DTN's library of proprietary content and solutions, and a real-time data delivery platform. DTN's management team will continue to run the company. Telvent sees strong synergies between the two companies that will result in significant global growth opportunities, by introducing a new information technology delivery model, as well as adding valuable products and solutions to its current portfolio of customers.

Announcement Date: September 16, 2008
Deal Value: $445 Million (Cash)
Seller Revenue: $180 Million (FY2008 est)

BPO Management Services to acquire HealthAxis

BPO Management Services Inc., is acquiring HealthAxis Inc., a provider of business process outsourcing services. HealthAxis provides business process outsourcing services for health benefit administrators and health insurance claim processors. Its services include the capture, imaging, storage and retrieval of paper and electronic claims, attachments, and related correspondence, in addition to rules-based claims pre-adjudication and editing and automated PPO routing and repricing.

Announcement Date: September 9, 2008
Deal Value: Undisclosed

Cambridge Technology Enterprises Ltd to acquire Protégé Software Services

Cambridge Technology Enterprises Ltd is acquiring Protégé Software Services Inc, a provider of information technology services. Cambridge Technology Enterprises, located in Hyderabad, provides information technology services. It provides IT solutions to customers based on SOA technology, and also develops software. Protégé Software Services Inc. provides information technology services for sites utilizing Oracle’s suite of products and technologies. The company offers full project lifecycle support for users of the Oracle eBusiness Suite, Fusion Middleware, and Technology.

Announcement Date: September 7, 2008
Deal Value: Undisclosed

SCS (USA) acquiring B4 Consulting

Sumisho Computer Systems (USA), Inc., a subsidiary of Sumisho Computer Systems (SCS) headquartered in Tokyo (Japan) intends to acquire B4 Consulting as a U.S. subsidiary. B4 Consulting delivers comprehensive Business Performance Management, implementation and support services for SAP solutions. The acquisition of B4 Consulting is critical to SCS’s strategic growth as a global provider of SAP solutions, and implementation and support services. B4 Consulting brings a wealth of SAP solutions and implementation expertise to SCS. It is one of the few gold-level SAP channel partners capable of addressing the entire mid-market of SAP solutions including SAP Business Objects, SAP Business One, SAP Business All-in-One and the new SAP Business All-in-One fast-start program as well as the subsidiaries of large enterprises running SAP Business Suite solutions.

Announcement Date: September 2, 2008
Deal Value: Undisclosed

Infosys acquires Axon plc
(HCL has since outbid Infosys, thus creating a competitive bidding situation)

The information technology consultancy implements enterprise resource-planning software from SAP and other developers. Infosys Technologies Limited (India) is acquiring Axon Group plc a leading UK-based SAP consulting company. Axon provides consultancy services to multinational organizations that have chosen SAP as their strategic enterprise platform and has about 2,000 employees. Specializing in the delivery of change through technology enabled transformation programs, Axon's consultants bring in-depth industry expertise alongside best practice functional knowledge to address the strategic, operational, information management and organization effectiveness. Infosys said the strategic combination of these two groups will accelerate the realization of their common aspiration – that of becoming the most respected provider of business transformational services in the global marketplace.

Announcement Date: August 25, 2008
Deal Value: $753.1 Million (Cash)
Seller Revenue: $378.3 Million (FYE 2007)

iSoftStone acquires Shanghai Jiefeng

iSoftStone Information Service Corporation, a global provider of business consulting, IT outsourcing, and business process outsourcing services, acquired Shanghai Jiefeng Information Technologies Co., a provider of enterprise application development services. Founded in 2001, Shanghai Jiefeng brings an expanded service offering, which allows iSoftStone to provide seamless, high quality, cost-effective delivery to existing and new clients of both legacy companies. Shanghai Jiefeng's comprehensive .NET technology and enterprise application development capabilities enable important functions such as HR, payroll and procurement applications, as well as knowledge management and projection management applications.

Announcement Date: August 14, 2008
Deal Value: Undisclosed

Emtec Global Services acquires eBAS and Aveeva

Emtec, Inc. has acquired eBusiness Applications Solutions, Inc. and Aveeva, Inc. headquartered in Fremont, CA, and their Indian subsidiary, Aviance Software India Private Limited, headquartered in Bangalore, India. Aveeva and eBAS offer a broad range of software consulting services, including business analysis, quality assurance, testing, and training as well as SAP, CRM, Oracle Apps, and Java-based solutions. They are an SAP Services Partner which offers many opportunities for SAP Implementation, Consulting, Value-Added Services, and Federal and State ERP implementations. With this acquisition, Emtec has accelerated the growth it began with the acquisition of Luceo, Inc. in March of this year. The Company now has over 400 consultants with a coast-to-coast presence and global delivery capability.

Announcement Date: August 13, 2008
Deal Value: Undisclosed
 
2e2 acquires Netstore

2e2, a private equity owned IT services business, has acquired Netstore (UK), an IT networking group. 2e2 provides IT infrastructure, maintenance, networking, education and other managed services. The business was established in 2002. Netstore describes itself as a managed services provider. It runs four data centers for mid-market customers, and it also has security and consulting divisions. The deal appears to be more about scale than heavy cost-cutting — 2e2 says customer overlap with AIM-quoted Netstore is limited.

Announcement Date: August 12, 2008
Deal Value: $112 Million (Cash)
Seller Revenue: $36.6 Million (2007)

Mural Consulting acquires OnDemand Solutions

Mural Consulting Corporation, a global Software as a Service (SaaS) consultancy for software, hosting and telephone companies, has acquired OnDemand Solutions, Inc. OnDemand specializes in helping Independent Software Vendors make their SaaS implementations more successful with strategy and execution services, including business plan validation and development, marketing services, technical architecture design, and software development. OnDemand brings to Mural Consulting a strong and motivated group of employees and consultants who are highly experienced in the ISV market. Together with an extensive partnership network, this has enabled OnDemand to provide laser-focused solutions for the unique set of challenges faced by ISVs who are considering, or already positioned in, the SaaS marketplace. The combined companies achieve the collective experience of successfully helping over 400 companies make the move to SaaS and improve existing on-demand offerings.

Announcement Date: August 5, 2008
Deal Value: Undisclosed

Global BPO Services acquires Stream Holdings

H.I.G. Capital, LLC, a private equity firm, has sold Stream Holdings Corporation to Global BPO Services Corp. (now known as Stream Global Services, Inc.). Stream is a leading global provider of technical support and other business process outsourcing services. With over 15,000 employees across 30 solution centers in 16 countries throughout North America, Europe, Africa and Asia, Stream is able to provide seamless, integrated business process outsourcing services for many of the world's leading technology, computing, communications, software, consumer electronic and media clients.

Announcement Date: August 4, 2008
Deal Value: $200 Million (Cash plus adjustments)

NTT Data Corporation to acquire Cirquent GmbH

NTT Data Corporation, the Japanese provider of a broad range of IT services including consulting, systems integration and IT outsourcing, is acquiring 72.9% of the issued shares of Cirquent GmbH, the IT consulting and service company, a 98% owned subsidiary of BMW Group (Germany). The transaction is part of NTT Data's internationalization strategy, which the company has pursued in an effort to service multinational clients from Japan and elsewhere around the globe. In January 2008, NTT Data had acquired a majority stake in Bielefeld-based intelligence AG, one of the leading international full-service providers for solutions in the SAP environment. Today, NTT Data already employs approximately 2,600 people, or 11 percent of its workforce, outside of Japan.

Announcement Date: August 1, 2008
Deal Value: Undisclosed

Allgeier Holding AG acquires TOPjects

The Allgeier Holding AG, a provider of IT services with headquarters in Munich, Germany, is acquiring 100% of the shares of TOPjects AG, a German IT service provider.  With the acquisition of TOPjects, which has 300 employees, the Allgeier Holding will be able to improve its position in the market, standing among the 20 top IT service companies in Germany.

Announcement Date: July 29, 2008
Deal Value: Undisclosed

Ness Technologies to acquire Logos AS

Ness Technologies, Inc., a global provider of IT services and solutions, is acquiring Logos AS, a privately-held, Czech-based leading IT services and consulting company. Logos has been one of the fastest growing IT services and solutions providers in the Czech Republic. With a strong presence in the Czech financial and telecom sectors, Logos provides a variety of IT services including consulting, custom software development, testing and quality assurance, information systems analysis, outsourcing and staffing. Upon completion of the acquisition, Logos will be merged into Ness Czech. The acquisition of Logos strengthens Ness’ already significant leadership position in Central and Eastern Europe, one of its fastest growing and most profitable geographies. Logos complements the Ness service portfolio with little overlap in services and customers. Coupled with its very strong organic growth in the region, this deal positions Ness for greater penetration of this strategic market.

Announcement Date: July 31, 2008
Deal Value: Undisclosed

Dynamics Research Corporation to acquire Kadix Systems

Dynamics Research Corporation, a provider of innovative engineering, technology and information technology services and solutions to federal and state governments, is acquiring Kadix Systems, LLC, a rapidly growing, high-end management consulting firm. Kadix maintains practice specialties in organizational change, human capital, information technology, public and environmental health and learning and organizational development. It is focused on the U.S. Department of Homeland Security (DHS), Marine Corps information technology, military medical health, and federal civilian markets.  Kadix Systems' high-end management consulting capabilities fully complement DRC's current core competencies in IT infrastructure, business intelligence, business transformation and training and enable greater access to key markets.

Announcement Date: July 30, 2008
Deal Value: $42 Million (Cash plus potential earnout up to additional $5 million)
Seller Revenue: $23 Million (2007)

Capgemini acquires Getronics PinkRoccade Business Application Services BV

Capgemini, one of the world’s leaders in consulting, IT services and outsourcing, has acquired the Getronics PinkRoccade Business Application Services BV. This division regroups GPR’s applications services activities (applications development, maintenance and management) in the Netherlands. The deal will allow Capgemini to reinforce its leadership position in one of its key markets, while developing a stable portfolio of long-term applications management contracts in the public sector.

Announcement Date: July 25, 2008
Deal Value: $399.8 Million (Cash)

Axon Group acquired Consulting Principles

Axon, an SAP Business Transformation consultancy, acquired Consulting Principles Pty Ltd, a leading provider of specialist supply chain and logistics SAP consulting services in Australia. Based in Sydney and Brisbane, Consulting Principles' clients include Queensland Rail and the Department of Environment & Climate Change, New South Wales. Consulting Principles was founded in 2001 and was already a member of Axon International. Axon claims to be the largest independent SAP consultancy in the world, has driven significant growth by leveraging its deep expertise in the Aerospace & Defense, Utilities, Transportation and Public Sector markets. The acquisition of Consulting Principles builds on its existing strengths in supply chain solutions.

Announcement Date: July 23, 2008
Deal Value: $3.4 Million (Cash, plus potential earnout of another $2.8 million)
Seller Revenue: $6.8 Million

Luxoft acquires ITC Networks

Luxoft, a global provider of high-end application and product development services, has acquired Bucharest-headquartered ITC Networks, a leading Romanian software outsourcing provider specializing in the telecommunications industry. The combined company will have more than 3,000 employees worldwide and an annual revenue run rate of over $150 million. The acquisition of ITC Networks, which follows Luxoft’s April announcement of a new office opening in Vietnam, further expands the company’s global footprint with ITC Networks’ large scale delivery capability within the European Union. The deal also strengthens Luxoft’s expertise in the telecom industry, expanding its client portfolio with companies like Nortel Networks, Avaya and Trapeze Networks.

Announcement Date: July 22, 2008
Deal Value: Undisclosed

Mediacontech SpA acquires majority in Delta Tre Informatica SpA

Mediacontech S.P.A. announced that it has signed agreements for the acquisition of a majority in of Delta Tre Informatica e Deltatre Suisse, operating in the information technology sector. Delta Tre Informatica is a Turin-based provider of media and information technology services.

Announcement Date: July 21, 2008
Deal Value: $ 57.8 Million (Cash plus potential $9.2 million financial results-based earnout)

Open Interface to acquire Media Knowledge

Open Interface Inc. (Japan) agreed to acquire Media Knowledge Industrial Co Ltd, a provider of system consulting services including design, development, maintenance for information system, development and sales of in-house packaging software. Open Interface Inc, located in Tokyo, develops software. The operations involve communication software and image transmission software. Its business includes testing solution service and product solution service.

Announcement Date: July 18, 2008
Deal Value: $0.51 Million

Imtech acquires Fit IT, Ebit and Thinking Solutions

Imtech, a technical services provider in Europe, is acquiring three ICT companies in Belgium:  Fit IT, Ebit and Thinking Solutions. Fit IT is an IBM Premier Partner and Microsoft Gold Certified Partner, specializing in ICT infrastructure solutions and related services. Ebit has been a specialist in existing software for a number of years and supplies customized software based on Java and Open Source technology. Thinking Solutions is both an IBM Partner (Ascential and Cognos) and an SAP Partner (Business Objects), with specialties including business intelligence, data warehousing and performance management. In total, the three companies have more than 70 employees and realized revenues of almost 18 million Euro in 2007. In the Netherlands, the German-speaking countries and the UK, Imtech has already established a strong position as an IBM and Microsoft Partner via Imtech ICT (the Netherlands), Fritz und Macziol and Infoma (mainly in Germany, but also in Switzerland and Austria) and REAL Solutions (UK). The ambition is to build up a similar position in more Imtech countries through acquisitions.

Announcement Date: July 16, 2008
Deal Value: Undisclosed
 
HCL Technologies acquires Liberata Financial Services

HCL Technologies, India’s fifth-largest software-services firm, announced the acquisition of UK-based BPO firm Liberata Financial Services. HCL will acquire four LFS delivery centers in the UK with 800 professionals as part of the acquisition and invest $24 million in the business over the next three years. LFS provides administrative and customer services to the life insurance and pensions industry, will earn revenues of about $60 million this year and has an order book of $540 million to be executed over the next few years. This acquisition will equip HCL with a ready capability across the value chain by providing access to an existing revenue stream of policy management, actuarial and analytics, catapulting HCL to become a leading service provider in the UK market for the Life and Pensions industry. This would be the second acquisition for HCL Technologies this year. In February it had acquired U.S.-based Capital Stream Inc. in an all-cash deal of about $40 million. The acquisition was aimed at strengthening the software firm’s presence in the financial services space. Capital Stream provides end-to-end lending and straight through processing solutions to commercial banks and finance companies in North America.

Announcement Date: July 16, 2008
Deal Value: Undisclosed

GOZIRRA acquires OG2, Inc.

IT Consulting firm GOZIRRA announces the acquisition of OG2, Inc. OG2 is a Dallas, Texas-based technology services firm, with a complementary service offering. OG2's strong expertise in the Banking and Health Services industries expands GOZIRRA's technical proficiency as well as its potential client base. It opens GOZIRRA to an entirely new business sector. The acquisition grows GOZIRRA's staff to 17 people, which supports their growth targets of increasing his technical staff to 30 by year's end.

Announcement Date: July 14, 2008
Deal Value: Undisclosed

TIG acquires Entre Business Technology Group

The Technology Integration Group, a San Diego-based provider of computer systems integration and IT consulting services, has acquired the Entre Business Technology Group of Atlanta, an integration services provider specializing in systems security and intrusion prevention.

Announcement Date: July 11, 2008
Deal Value: Undisclosed

Allied Digital acquires En Pointe’s IT Services Business

Allied Digital Services Ltd., an IT management and technical services outsourcing company, has acquired the IT services business of En Pointe Technologies. The deal includes the transfer of substantially all of En Pointe's service employees and related contracts.

Announcement Date: July 9, 2008
Deal Value: $24 million ($10 million cash and 745,000 shares of ADSL stock)

OneNeck acquires business unit from Ensynch

OneNeck IT Services Corporation, the leading ERP outsourcing services provider to mid-market companies, has acquired the managed hosting business unit from Ensynch, Inc., a leading provider of IT consulting and staffing services. The Ensynch managed hosting business will provide OneNeck with an additional Tier II data center in the Phoenix area and a team of highly skilled technical resources. The transaction also brings 100 additional mid-market customers to OneNeck, further solidifying their position as the mid-market leader of outsourcing services.

Announcement Date: July 7, 2008
Deal Value: Undisclosed

Consona ERP acquires Automated Design Systems assets

Consona ERP Inc., a provider of ERP software and services for small and midsize discrete manufacturers, has acquired the Intuitive-related assets of Automated Design Systems (ADS), a Canada-based provider of software tools, implementation services, integration support and education programs for the world’s leading CAD and ERP applications. The acquisition of the Intuitive-related assets of ADS reinforces Consona ERP’s aggressive acquisition strategy to acquire manufacturing expertise within the ERP industry, and extends the company’s footprint within the Canadian market. The combined companies will look to grow and increase market share as a provider of ERP software and services for Canadian manufacturers.

Announcement Date: July 7, 2008
Deal Value: Undisclosed

Ensynch to acquire eBI Solutions

Ensynch, Inc., provider of IT consulting and staffing services, is acquiring eBI Solutions, a Microsoft Gold Certified Partner in Business Intelligence, Business Process Integration, Application Development, and eCommerce applications. eBI Solutions is recognized for its ability to help customers integrate line of business applications, enterprise applications, web, and business processes to achieve efficiencies and a competitive advantage. eBI Solutions’ strength and depth of experience complements Ensynch’s strong capabilities in Core Infrastructure, Unified Communications, and Collaboration.

Announcement Date: July 7, 2008
Deal Value: Undisclosed

SunGard acquires Delphi Technologies

SunGard has acquired Delphi Technologies Limited (Ireland), a provider of consulting services and managed professional services to Ireland's financial services, insurance and telecommunications industries. Delphi Technologies will become part of SunGard's European Consulting Services business. Delphi delivers consultancy services and managed professional services to some of Ireland's largest financial services and telecommunications companies. With over 140 staff and contractors, Delphi has two main operating divisions: managed professional services, which offers project management, business analysis and testing skills; and consultancy services, which offers outsourced project management and best practice services. SunGard's acquisition of Delphi serves three key purposes: it further extends consulting capabilities in Europe growing SunGard’s number of consultants to over 700; it broadens their solution set to cover specific quality and testing skills; and it helps to build Sungard’s infrastructure in a country where they have more than 50 customers.

Announcement Date: July 2, 2008
Deal Value: Undisclosed

Dataskill to acquire Silicon Space

Dataskill, Inc., a virtual information technology, data management, and software agency firm, is acquiring Silicon Space, LLC. Silicon Space is a leading provider of outsourced software product development and design services. The company specializes in the development of web-based software solutions and application integration, leveraging its “Global Delivery Platform” which is based on a hybrid staffing model. This model leverages on-site account management while leveraging offshore and no-shore resources (from Mexico) to optimize development costs. As part of the transaction, all Silicon Space employees will join the newly combined entity, doubling the size of Dataskill’s staff. Silicon Space is an ideal complement to Dataskill’s core business and focus on delivering back-end, data-centric solutions and services.

Announcement Date: July 1, 2008
Deal Value: Undisclosed

Maxima Holdings to acquire DXI Networks

Maxima (UK), a provider of integrated IT solutions and managed services, is acquiring DXI Networks, a provider of converged information and communications technology services. The company said the acquisition of DXI continues Maxima's successful strategy of building a focused IT solution and managed services group through value enhancing acquisitions and organic growth. Maxima's acquisitions underpin the group's business model of generating high margins from recurring revenues with strong cash generation. As Maxima builds scale in the fragmented IT markets in which it operates, acquired businesses will increasingly generate synergies and cross-selling opportunities for Maxima.

Announcement Date: July 1, 2008
Deal Value: $17 Million (Cash)