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