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IT Services Industry Sector - M&A Update For Q1 2013

|Includes: Accenture plc (ACN), CBR, CTSH, DXC, EDGW, GIB, GPX, HCKT, IGTE, INFY, PRFT, TTNQY, UIS, WIT

Generation Equity Advisors, a technology and digital media investment bank and M&A advisor, recently released its latest IT Services M&A update for Q1 2013.

The following summarizes its key findings:

Global consulting firms were very active in Q1 2013 and announced multiple M&A transactions.

Highlights of IT Services M&A transactions announced in Q1 2013 include:

 

  • KPMG acquires purchasing and supply chain management consulting firm BrainNet and adds approximately 300 employees at 14 sites in Europe, Asia, the USA and Latin America.
  • KPMG acquires the Oracle ERP systems integration practice of The Hackett Group with estimated revenues of approximately $12 million in 2012.
  • Quadrant 4 Systems acquires Blazerfish LLC, Teledata Technology Solutions, Inc., and Momentum Mobility representing a combined $25 Million in gross revenue during the past calendar year (2012).
  • Teletech Holdings acquires Avaya specialist and communications systems integrator and consulting firm Technology Solutions Group.
  • Ernst & Young acquires Germany based J&M Management Consulting AG which has 320 employees across Europe and generated an annual revenues of approximately €50m in 2011.
  • Linedata Services SA agreed to acquire banking software development and consulting firm CapitalStream, Inc. from HCL Technologies Ltd. For $45 million.
  • Deloitte Consulting acquires talent and HR management consulting firm Bersin & Associates.
  • Deloitte Consulting acquires Salesforce.com and Microsoft SharePoint specialist consulting firm Vivens; based in Germany with 50 employees.
  • Deloitte Consulting acquires global strategy consulting firm Monitor Group.
  • Groupon acquires internet consulting services and software development firm Mashlogic.

"Large global IT consulting firms were very active in Q1 2013," according to Aaron Solganick, CEO and founder of Generation Equity Advisors. "We believe that consolidation will continue for the next 12 to 24 months within the IT Services sector due to an improved U.S. and global economy and increasing demand for IT outsourcing."

You can download the complete report (free) at: www.generationequityadvisors.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.