The IT services sector is seeing a burst in acquisition activity as the companies that emerge from years of recession strong begin to consolidate the sector.
Getronics has acquired NEC Enterprise Solutions’ business in the UK as well as units in other European countries, Cognizant has taken over France based Equinox Consulting, Accenture is buying procurement business process outsourcing firm Procurian and Civica acquired InfoMaster which supplies software to the local government sector in Australia.
These follow acquisitions from large suppliers. Microsoft bought Nokia’s Devices and Services business for £4.6bn and Vodafone sold of its stake in US firm Verizon Wireless to Verizon Communications for $130bn. Extreme Networks acquired rival Enterasys Networks for $180m.
So some businesses are adding to their portfolios while others are just trying to survive. It’s the perfect mash-up. Well this depends what customers think.