The European IT services market may see further
consolidation if Groupe Steria, an IT services company based in
France, succeeds in acquiring Mummert Consulting of
Germany.
Steria has entered exclusive negotiations to acquire Mummert,
the two companies said in separate statements. The negotiations
began after Mummert invited a number of companies to bid, Steria
said.
Steria operates in 12 countries in Europe, but does 42% of its
business in France and 28% in the UK, according to company figures.
It is seeking growth in Germany, which accounts for just 5% of its
revenue.
This makes Mummert, which operates mainly in Germany and focuses
on finance, utilities and the public sector, an attractive
target.
Combining Mummert with the 300 staff at Steria's German
subsidiary would create a German division with annual revenue of
almost €200m (£137m), the companies said.
The European IT services market has seen a number of mergers and
acquisitions of late, including Atos Origin's purchase of
SchlumbergerSema late last year, and this year Capgemini's takeover
of Transiciel and Hewlett-Packard's acquisition of UK company
Synstar.
And there could be more to come, according to one analyst.
"It is still a dynamic market. We could still see some large
acquisitions," said Renaud Smagghe, a senior consultant at market
watcher Pierre Audoin Consultants.
Peter Sayer writes for IDG News Service