Large IT Companies Look to Broaden Cloud Expertise Through M&A
The appetite for cloud consultancies has continued through the first half of 2020, underlining the consolidation trend seen in recent years. As the product suite of cloud products becomes more abundant and the ability to service the platforms becomes more complex, the hunger for companies with expertise in particular product suites has become evident. Large IT consultancies looking to broaden their capabilities and quickly expand into certain geographical locations are swooping in to acquire cloud consulting companies with niche capabilities and expertise.
On June 11, 2020, Cognizant finalized its acquisition of Collaborative Solutions for ~$385 million. Collaborative Solutions is a global consultancy specializing in Workday enterprise cloud applications. As a leader in the cloud consulting industry and a Workday Service Partner since 2007, Collaborative Solutions will help Cognizant expand its suite of cloud offerings and add a new specialization in Finance and HR advisory and implementation services. This is the latest of four acquisitions for Cognizant within the cloud space since the beginning of the year.
On June 3, 2020, Deloitte completed the acquisition of Ireland-based consultancy DNM for an undisclosed amount. DNM is a leader in cloud consultancy and managed services and is also a Premier Consulting Partner in the AWS Partner Network. This acquisition will add to Deloitte’s growing specialization within the AWS product suite as well as its push into the cloud consulting sector of Ireland and other European countries.
In March, Capgemini announced the acquisition of White Sky Labs for an undisclosed amount. White Sky Labs, with over 150 employees and operations across Australia and Asia, is one of the largest independent MuleSoft Service consultancies in the world. This acquisition allows Capgemini to continue to expand its cloud offerings and gain access to White Sky’s vast network of clients across the region.
Also in March, Infosys completed the acquisition of Simplus for ~$200 million. Simplus is a cloud consultant and Salesforce Platinum Partner with key capabilities in both the USA and Australia. The acquisition allows Infosys to gain market share in key areas as well as expand its offerings and capabilities to existing clients.