Analysis on Acquisition of Firms

IT Consulting Vendors : Acquisitions

Accenture(1/2)

2

Gestalt, LLC

• On Jan 3, 2008, Accenture acquired Gestalt, LLC, a Defense Consulting Firm Specializing in Mission-Support Services.

• Gestalt provides mission-critical command and control systems and solutions that help defense organizations achieve systems interoperability and collaboration, allowing information systems from separate branches of the armed services to share battlefield information in support of joint military operations.

• Gestalt also provides services related to modeling and simulation, advanced decision-support technologies, energy-management solutions, and tactical collaborative networks.  Its clients include the U.S. Armed Forces, DoD/Joint Forces Command (JFCOM/J7/JNTC), and regional power grid management organizations.

Accenture(2/2)

3

Hagberg Consulting Group

• On May 15, 2006, Accenture acquired Hagberg Consulting Group, as a part of Accenture's Strategy practice to support existing client offerings in areas such as corporate transformation, mergers and acquisitions and globalization.

• Hagberg's key assets include a benchmarking database comprising corporate culture data from hundreds of thousands of employees at more than 400 companies; a proprietary cultural assessment methodology; and Web-based survey tools.

• These assets help organizations identify the cultural characteristics that motivate employees and affect their ability to achieve their corporate strategies.

Pecaso Limited

• On May 8, 2006, Accenture completed its acquisition of Pecaso Limited, a leading information technology firm specializing in SAP human capital management (HCM) consulting and integration services for multinational corporations and governments.

• With Pecaso's robust set of information technology products, Accenture helps optimize and accelerate SAP HCM implementations for its clients. The acquisition is also expected to enhance Accenture's alliance with SAP.

AT Kearney

4

• On Jan 23, 2006, AT Kearney completes a management buy-out of the consulting from its former parent EDS.

• It has revenues of $798 million in 2005

• AT Kearney’s palette of services include merger, growth and IT strategy, enterprise services transformation, strategic supply management, innovation and complexity management, supply chain management and supply management services.

Capgemini (1/2)

5

Getronics PinkRoccade Business Application Services BV

• On Jul 25, 2008, Capgemini reached an agreement in principle with Getronics PinkRoccade for the acquisition of Getronics PinkRoccade Business Application Services BV (BAS BV)

• BAS BV had a turnover of close to €300 million in 2007 and Specializes in applications services for the Dutch public sector IT services market, with 40% of its revenues in this segment

• Through this acquisition, Capgemini will 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

Software Architects

• On Feb 8, 2007, Capgemini SA has agreed to acquire Software Architects Inc. , a company with 500 employees and $68 million in revenues

• Software Architects Inc., which focuses on project management, architecture and business technology services, will provide a gateway for new business in cities such as Tampa, Florida, and Phoenix, Arizona

Capgemini (2/2)

6

Kanbay International Inc.

• In October 2006, Capgemini acquired Kanbay International Inc. an IT services company that is listed in the US but operates mostly out of India, for $1.25 billion.

• The deal made Capgemini the largest MNC in the Indian IT services space in terms of Indian head count percentage ahead of giants like IBM, Accenture and Electronic Data Systems.

• This acquisition strengthened Capgemini’s presence in North America and positioned Capgemini as a leader in the Financial Services sector - which accounts for 22% of the global IT market and also enhancing its domain expertise.

HP (1/2)

7

The Technology Partners, SpA (TTP)

• On Jun 27, 2006, HP acquired TTP, an IT consulting and systems integration company in Italy specializing in the financial services and telecom industries. TTP was also a leading consulting player in the Italian services market with a strong customer base.

• This acquisition would boost HP Service’s capabilities in data warehousing, business intelligence, customer relationship management and security.

• This acquisition would allow HP to expand its footprint in the Italian market, enhance its go-to-market strategy in the financial services industry, and reinforce its presence in the telecom, media and energy utility segments

HP (2/2)

8

EYP Mission Critical Facilities Inc.

• On Nov 12, 2007, HP acquired EYP Mission Critical Facilities Inc. (EYP MCF), a consulting company specializing in strategic technology planning, design and operations support for large-scale data centers.

• The firm provides mission-critical services to enterprises around the world in business sectors including financial services, telecommunications, technology, broadcast, manufacturing and healthcare, as well as numerous federal, state and county government agencies.

• By acquiring EYP MCF, HP will be better able to help customers to transform their data centers, optimize energy efficiency and position them for future business growth.

• EYP MCF’s capabilities – particularly its expertise in energy-efficient operations – complement HP’s extensive Data Center Services and cost-saving power and cooling solutions, such as Dynamic Smart Cooling.

Satyam

9

Bridge Strategy Group

• On Jan 22, 2008, Satyam acquired Bridge Strategy group in an all cash deal for $35 million

• Bridge Strategy group consults a wide coverage of industries with particular strengths in Energy & Utilities, Financial Services and Technology sectors

• This acquisition strengthens Satyam’s Strategy Consulting Capabilities, builds platform for Global Delivery in Strategy Consulting, enables Transformational Consulting for Our Customers and gives it Competitive Differentiation

NITOR

• In Oct 2007, Satyam acquired NITOR for $5.5 million

• Founded in 2002, NITOR had revenues of $3 billion in 2006.

• NITOR’s a niche consulting company, which provides Infrastructure Management Services (IMS), and will be merged to Satyam’s IMS group.

Tata Consultancy Services

10

Total Communications Solutions (TCSM)

• In Nov 2006, Tata Consultancy Services acquired TCSM, a privately-owned consulting company in Australia for an up-front cash payment of Aus$1.7 million, plus performance payments for a total consideration of Aus$ 15 million over five years.

• TCSM had over 35 senior consultants with a total turnover of Aus$5.5 million for the financial year ended June 30, 2006.

• TCSM specialized in business and technology transformation, bringing benefits such as strategy conversion, program alignment, portfolio balancing and navigation services. It also implemented core delivery management solutions for the larger banking clients.

WIPRO (1/2)

11

cMango

• In 2006 Wipro acquired US-based technology infrastructure consulting firm cMango Inc

• cMango’s had annualized revenues of $13 million in 2006 • cMango’s services comprised of business transformation, ITIL consulting, service management solution architecture, implementation, training and support services

AMS

• In 2003, WIPRO acquired AMS, a global energy practice with 90 domain experts and IT consultants across USA and Europe

• In 2002, AMS had revenues of $1.3 billion and was acquired for $26 million

• American Management Systems helped Wipro get into utility consulting

• WIPRO strengthened its business relationship with Shell (brings in about $12 million/quarter), and increased its chances of consideration in Shell's $3 billion outsourcing project that eventually went to IBM and Wipro

WIPRO (2/2)

12

NerveWire

• In 2003 WIPRO acquired NerveWire, which brings a team of 90 domain experts catering to various segments within the banking, financial services and insurance (BFSI) space.

• In 2001, NerveWire generated revenues of $30M - $40M. It was acquired for $18.7 million in an all cash deal.

• NerveWire’s addresses clients in areas like security services, private client trading/investment management, banking, insurance and high-tech industries. The deal helped WIPRO to expand it’s footprint in the banking space.

• Acquisition of NerveWire translated into a precious multi-year contract with General Motors (GM).

Ericsson India R&D arm

• In 2002, WIPRO acquired Ericsson’s India R&D arm

• Ericsson’s Indian R&D arm positions WIPRO to bid for large outsourcing deals in R&D services

• WIPRO’s telecom practice was stagnating at a growth rate of 11 per cent and contributing about 15 per cent in the third quarter of 2003. With this acquisition, it had an impressive growth rate of 28 per cent in the quarter ending December 2005.