French IT Services providers accelerate with acquisitions

Four of the largest French IT Services providers have announced interesting acquisitions in the last three months.

The first one is the smallest in size (330 employees, $130m revenue), but perhaps the most intriguing. Atos announced in December the takeover of Maven Wave, a US innovative company with a strong focus on Google. Atos is already among the Top five in Europe in Google environment; with this acquisition it strongly reinforces its position in the biggest Google market, the US. Google has been so far the smallest among the hyperscalers, still well behind AWS (historical leader) and Microsoft with Azure. However Google is catching up and driving real differentiation with its Analytics and AI propositions. Atos has a track record of larger scale purchases (such as the divisions of Xerox, Siemens, Bull, Unify, Syntel etc) but Maven Wave is the kind of acquisitions we are pleased to see from Atos, as it perfectly fits to the new digital world. For details about Atos, please read our vendor profile.

The second one was announced by GFI Informatique in December. GFI is the 5th largest French services provider, well behind Capgemini, Atos, Sopra Steria and OBS (Orange Business Services), yet reporting €1.4bn. revenue in 2018. So far GFI has generated two thirds of its revenue in France; Belgium (following the takeover of Realdolmen) and Spain/ Portugal being the other key markets. With the take over of IECISA, IT subsidiary of the Spanish retailer El Corte Ingles, GFI will add € 700m to its revenue, manly in Spain, but also in Portugal and Latin America. GFI will enter the IT Services Top 5 in Spain, with a strong presence there in Public Sector, Retail, Banking and Telecom, and the Top 25 in EMEA. For details about GFI Informatique, please read our vendor profile.

In January Capgemini announced it would acquire the majority of Altran's shares. Altran is the leading engineering services supplier worldwide with €3bn revenue, a strong presence across Europe and a reasonable scale in the Americas. This will help Capgemini confirm its place in the IT Services Top 10 worldwide (closing the gap to the Top 5) and take the 3rd place in EMEA. Moreover it will create a leader in the new world of IT-OT integration, able to address successfully the emerging IoT opportunities. For sure the integration will be challenging given the different business models, however the synergy potential is really promising. For details about Capgemini, please read our vendor profile.

Last, also in January, Worldline (former Atos' subsidiary) announced the purchase of Ingenico. Ingenico is a provider of payment solutions and related services, reporting € 3.4bn. revenue in 2019 across the world. Together with Ingenico, Worldline will confirm its leadership on the BPO market in EMEA and enter the Top 10 worldwide. Moreover Worldline will belong to the Top 5 BPO suppliers for payment services BPO at worldwide level.