Consulting Sector M&A Deals (January to mid-February)

businessman doing handstand on the beachKellton Tech acquires US firm Bokanyi Consulting
Deal Size: Undisclosed Industry: IT Consulting Date: January 2016
Kellton Tech Solutions Limited, a Hyderabad-based IT services and solutions company, has acquired Bokanyi Consulting, a cloud and analytics services provider based in Houston, US, with revenues of $8 million last year, for an undisclosed amount. Kellton Tech funded the entire acquisition through internal accruals. The acquisition demonstrates Kellton Tech’s continued investment in ISMAC (Internet of things, social, mobile, analytics and cloud) and its resolve to further strengthen its core focus. With the US already contributing substantially to Kellton Tech’s revenue, the move will further improve its in-region support and help it to cater to the increasingly profitable mid-markets, the company said in a press release on Wednesday. Bokanyi, an expert in serving the mid-market IT needs of customers across 12 countries, is the second acquisition that Kellton Tech has made in less than a year. The company had, in June 2015, acquired US-based enterprise solutions and business integration provider ProSoft Group, for $14 million in an all-cash deal. “As we merge Bokanyi’s proven enterprise technology expertise, that complements our ISMAC focus, we look forward to a myriad of new business opportunities while leveraging the cross-selling possibilities brought forth through this acquisition. We are confident of a seamless integration, and expect the unique synergies from the alliance to enable us to offer greater scale and superior range of transformational services,” said Niranjan Chintam, founder and chairman of Kellton Tech. (http://smartinvestor.business-standard.com)

PWC agree deal to buy customer experience consultancy Outbox
Deal Size: Undisclosed Industry: IT Consulting Date: January 2016
European customer experience consultancy Outbox has been acquired by PWC, bringing PWC technology practitioners to 3,000 across EMEA. Nicholas Mobbs, British entrepreneur and co-founder of Outbox, has spoken how this is a milestone for the technology sector as PWC strengthens its operations in Central and Eastern Europe, the up and coming technology skill powerhouses in the world. PWC is hoping the deal will bolster its ability to offer specialised cloud-based solutions and transformational services for clients across the UK and Europe. The Polish-based Outbox specialises in customer, digital and technology services working with leading platforms such as Salesforce, Microsoft Dynamics, Oracle and SAP. Its addition will further enhance PwC’s cross-industry customer and digital capabilities to deliver innovative solutions across all channels, platforms and devices. The deal comes after previous acquisitions by PwC, including the European consultancy Mokum, and Booz & Company (now Strategy&), in 2014. The addition of the Outbox Group will increase the firm’s contingent of technology practitioners to almost 3,000 across EMEA. More than 250 Outbox employees will join PwC. PwC’s UK and EMEA Consulting Leader, Ashley Unwin, said: “This acquisition represents a major milestone for PwC’s UK and Central and Eastern Europe alliance and its commitment to invest in emerging markets. “It is also a significant addition to our customer and digital capabilities and sees the establishment of a Centre of Excellence for these skills within PwC in Europe.”PwC’s UK and EMEA Technology Consulting Leader, Jonathan Tate, commented: “Our clients are prioritising growth and investing to deliver great experiences to their customers. “This acquisition was driven by a rising demand from our clients in digital and customer transformation as well as the need to offer services from strategy through to execution. “Outbox will allow us to present a truly differentiated offering, enabling us to deliver larger and more transformational solutions to businesses across the UK, Poland and the rest Europe. It will also support one of the firm’s strategic priorities to further embed technology into its services.”Outbox managing director, Nicholas Mobbs, who will join PwC as a partner added: “We created Outbox 10 years ago in Poland. Through dedication and hard work we have tapped into the wave of disruptive technological change, leading to considerable success across Europe with our unique position around a customer first multi-technology strategy. “This deal will provide PwC with the ability to offer a unique combination of world class skills and services, by delivering true cloud-based business transformation projects to the market and benefitting existing clients. The potential market for customer experience, CRM and digital is estimated at over 6 billion Euros and we see this growing even in challenging economic times.” (http://www.growthbusiness.co.uk

Navigant Consulting, Inc. (NCI) Upgraded to Buy by SunTrustDeal
Size: Undisclosed Industry: Professional Services Date: February 2016
SunTrust upgraded shares of Navigant Consulting, Inc. (NYSE:NCI) from a neutral rating to a buy rating in a report published on Thursday morning, The Fly reports. SunTrust currently has $16.00 target price on the stock. NCI has been the topic of a number of other reports. William Blair raised shares of Navigant Consulting from a market perform rating to an outperform rating in a report on Tuesday, January 5th. Barrington Research reaffirmed a buy rating on shares of Navigant Consulting in a report on Friday, November 27th. Finally, Zacks Investment Research cut shares of Navigant Consulting from a strong-buy rating to a hold rating in a report on Monday, January 4th. The company has a market cap of $718.46 million and a price-to-earnings ratio of 12.43. Navigant Consulting has a 12 month low of $12.71 and a 12 month high of $17.95. The firm’s 50-day moving average price is $15.59 and its 200 day moving average price is $16.24. Navigant Consulting (NYSE:NCI) last issued its earnings results on Thursday, February 11th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.20 by $0.08. The firm earned $212 million during the quarter, compared to the consensus estimate of $206.01 million. During the same period in the previous year, the company posted $0.28 earnings per share. The firm’s revenue for the quarter was up 4.0% compared to the same quarter last year. (http://www.wkrb13.com)

Stantec to Acquire VOA Associates
Deal Size: Undisclosed Industry: Professional Services Consulting Date: February 2016
Stantec Inc., a Canadian provider of professional consulting services in the area of infrastructure and facilities, has signed an agreement to acquire VOA Associates Incorporated, a provider of architecture, planning, and interior design services based in the US. VOA has around 280 employees, while Stantec has around 15,000 employees. Pursuant to the transaction, 140 employees of VOA will join Stantec office based in Chicago. Bob Gomes is the president of Stantec, and Michael Toolis is the chairman of VOA. The transaction is expected to close in late March 2016. (http://www.4-traders.com)

MarketResearch.com Acquires The Freedonia Group
Deal Size: Undisclosed Industry: Marketing Consulting Date: February 2016
CLEVELAND, OH | MarketResearch.com, Washington, DC, a supplier of market research solutions and services, has completed its acquisition of The Freedonia Group, a global creator of industry research reports and consulting services for more than 30 years. The businesses’ complementary assets are being integrated, reportedly enabling existing services to be enhanced and creating new opportunities for clients of both services. “This is a great day for our company as we officially welcome the talented Freedonia team to MarketResearch.com,” says Rob Granader, CEO and founder of MarketResearch.com and its publishing division. “We are bringing together some of the industry’s most trusted brands under one umbrella, allowing us to serve our global customer base with the best selection of reports, platforms, and custom services.” The companies says the acquisition provides businesses, nonprofit organizations, and academia a single source of authoritative market research stretching across multiple industries, from consumer goods and services to life sciences, construction, and materials to chemicals and packaging. The Freedonia business unit will be led by Jeff Weiss, CEO of The Freedonia Group since 1997, reporting to Granader and supported by both the Freedonia content team and MarketResearch.com sales and marketing management. (http://pffc-online.com)

IPG buys Bristol mobile consultancy
Deal Size: Undisclosed Industry: IT Consulting Date: February 2016
Mubaloo, the UK-based award-winning enterprise mobile consultancy and app developer has announced it has been acquired by IPG Mediabrands, a London-based agency which buys advertising space and runs marketing campaigns for big corporate firms around the globe. Although the figures are undisclosed at this time, rivals The App Business was sold to St Ives last month in a deal worth more than £50m and ArcTouch was also recently acquired by WPP. Through the Mubaloo acquisition, Mediabrands is now able to deliver end-to-end mobile programmes, app development, enterprise integration and connected IoT technologies, such as beacons. As roles within the c-suite shift towards a digital mindset, mobile is being tightly integrated across the CIO, CTO and CMO agenda. The fact that three developers have been acquired by leading marketing companies within a short space of time indicates that there is a shift in the market, as this represents a need by media and marketing agencies to seek a technological advantage over each other to service their clients. The shift is also confirmed in a recent report by Forrester Research; in order for organisations to differentiate their brands, “marketing leaders will select agencies able to ideate new engagement scenarios combining the power of smartphones, wearables, and other connected objects.”In other words, those without the technical capability to help deliver these services to clients will lose over time. Jason Carter, chief digital officer at IPG stated that “No company can not afford to be a technology company today.” (http://www.forbes.com)

Anthesis continues global expansion with U.S. acquisition
Deal Size: Undisclosed Industry: Environmental Consulting Date: February 2016
Anthesis Group (London), a global sustainability services and solutions provider, has acquired environmental and sustainability consulting firm Mosaic Sustainability (Boulder, Colo.), its eighth acquisition and first in the United States since being founded in September 2013. Mosaic Sustainability works globally with companies to advance sustainable business initiatives, reduce environmental impact and improve environmental and social performance. Core services include data visualization and analytics, strategy development, reporting and disclosure, and supply chain management. Matt Wood will remain as managing director of Anthesis Mosaic and will join the Anthesis senior U.S. management team. Anthesis aims to occupy the space between the large players for which sustainability is non-core and small local specialist firms. Since 2013 Anthesis has acquired Best Foot Forward, Caleb Management Services Ltd., SecondNature Partnership, M4C Sustainability, LRS, UMR GmbH and TEP in the Philippines. (http://www.ebionline.org)

Jacobs Engineering Group Inc. (USA) acquired J. L. Patterson & Associates, Inc. (USA)
Deal Size: Undisclosed Industry: Engineering Consulting Date: February 2016
Jacobs Engineering Group Inc. completed its acquisition of J.L. Patterson & Associates (JLP), headquartered in Orange, California. Company officials did not disclose the terms of the agreement. JLP is a consulting and professional services engineering firm specializing in rail planning, environmental permitting, design and construction management. It provides services to numerous public transit agencies and is a major provider of professional consulting services to Class 1 railroads across the U.S. Jacqueline Patterson, president of JLP, founded the company in 1990 as a certified Women Business Enterprise/Disadvantaged Business Enterprise.  The acquisition significantly enhances Jacobs’ overall rail services capability, positioning the company in the top tier of rail professional service providers in North America. JLP’s design concentration in the West Coast combined with Jacobs’ national systems resources enables Jacobs to bid for full service programs in the growing U.S. West Coast rail markets, providing additional capacity to pursue the anticipated $17 billion commuter rail/transit capital programs. In particular, the acquisition increases the company’s capability in supporting planning, design and construction management for North America’s seven Class 1 railroads. Jacobs Senior Vice President Buildings and Infrastructure Randy Pierce stated, “We are delighted to welcome JLP to Jacobs. We are already very familiar with JLP’s outstanding credentials, having worked closely with it to deliver rail projects for many years. JLP is a premier rail company that has grown rapidly to become a recognized leader in rail consulting. JLP’s talented employees and its unwavering focus on quality, safety and client relationships align extremely well with our core values. As well as positioning us for Class 1 Freight rail opportunities, this acquisition means we can now leverage JLP’s customer service model to meet the expanding rail needs of our Industrial, Oil & Gas and Mining & Minerals clients.” President of JLP Jacqueline Patterson added, “We are delighted to be combining forces with Jacobs. This decision enables us to leverage the additional resources of the Jacobs network to meet the needs of our clients in a growing market. In addition, this move provides many additional opportunities for our employees to contribute to larger, more complex rail projects.” Jacobs offers full service rail consulting, providing all aspects of rail planning, environmental, design and construction services to most of the public and private railroads in the U.S. (http://www.gulfoilandgas.com)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s