Summer Brings Hot M&A Market for IT Consulting as IT Services Players Snap Up Software Engineering Consultancies

As the adoption of digital has grown increasingly necessary in every industry, the demand for services
such as digital transformation and implementation has grown in kind. Major IT players across the globe
have shown a hunger for systems and software development shops, pushing transaction values in the
space higher and higher. This summer, several IT consulting acquisitions sold for scorching premiums
as the IT services behemoths snap up companies in the space, continuing a trend seen throughout the
last 12 months. It is also interesting to note a pivot away from the recent popularity of digital
marketing consultancies and toward more systems and development-oriented shops. We will no doubt
continue to see blockbuster deals in this space as consolidation in IT services grinds on.

On June 24, 2019, Altran Technologies SA, an engineering consulting services company, announced
that it will be acquired by Capgemini SE for $4.1 billion. This transaction will allow Capgemini to
expand its tech reach and maintain its position as a major IT Consultancy firm in an increasingly
competitive industry.

On June 18, 2019, Tieto Oyj announced that it will acquire IT solutions and software services company,
Evry ASA, in a $1.5 billion deal. The merged company will boast annual revenues of nearly $3 billion
and will bring together nearly 24,000 employees. This transaction comes as Tieto seeks to expand its
presence in the Nordic IT services market.

On June 14, 2019, Hexaware Technologies, Inc. announced that it will acquire digital consulting
services company, Mobiquity Inc., for $182 million. This transaction will add to Hexaware’s strategic
offers and contribute to an “exciting new phase of growth”, says Hexaware CEO, R Srikrishna.
On June 14, 2019, CGI Group Holdings Europe, a subsidiary of CGI Inc. (NYSE: GIB), announced an all
cash offer to acquire software development and IT services company, SCISYS PLC, for $100.1 million.
The board of SCISYS is unanimously recommending this deal to its shareholders as it will allow SCISYS
to benefit from CGI’s size, strength, and global reach. This merger comes as CGI continues to
implement its “build and buy” strategy and expands throughout the UK and Germany.

And finally on January 7, 2019, DXC Technology Company (NYSE: DXC) announced that it would
acquire Luxoft Holding, Inc, a digital strategy and software engineering firm, for $2 Billion. The
transaction was approved and completed in mid-June and will help DXC to expand its ability to design
and deploy transformative digital solutions for clients. “The acquisition will allow DXC to cover the full
spectrum of business-driven digital initiatives, from modernizing client legacy IT systems to delivering
transformational digital solutions at scale”, says Mike Lawrie, DXC’s Chairman, President, and CEO.