Equiteq’s quarterly market updates provide an indicative guide to current M&A market conditions in the consulting industry. However, it should be noted that we typically observe large variations between quarterly M&A volumes, which are not always reflective of longer term trends.
M&A activity was mixed in the second quarter after a strong start to the year. Overall global deal activity in the consulting sector fell by 12% quarter-on-quarter. Deal volumes fell by just 2% on the same quarter last year. The Equiteq Consulting Share Price Index rallied in the second quarter, achieving similar returns to the S&P 500.
DXC Technology acquires Microsoft Dynamics 365 specialist Tribridge
DXC Technology made its first acquisition after forming in April following the merger of CSC and the Enterprise Services unit of Hewlett Packard Enterprise. The technology giant acquired 740-person Microsoft Dynamics 365 consulting firm Tribridge and its managed cloud business Concerto Cloud Services. The deal is expected to enhance the buyer’s consulting offerings focused on clients in health care, government, consumer packaged goods, and professional services.
Tribridge is one of the largest independent integrators of Microsoft Dynamics 365 and is a six-time winner of Dynamics 365 Worldwide and U.S. Partner of the Year. Tribridge will become part of DXC Eclipse, an IT application consulting business acquired by the business in October 2015 for c.$300m.
Accenture acquires Salesforce specialist Phase One
Accenture agreed to acquire Phase One Consulting Group, a Virginia-based digital transformation specialist for the federal market with strong capabilities in Salesforce cloud solutions. Phase One will join Accenture Federal Services upon completion of the deal.
Phase One offers secure cloud implementation and consulting services to federal agencies for projects across various government sectors. The business had backing from RLJ Equity Partners, who acquired Phase One in early 2015. The company also received an undisclosed amount of development capital from Salesforce Ventures in September of last year.
Equiteq is pleased to announce that it has advised CMF Associates (“CMF”), a leading provider of financial and operational consulting services to the private equity sector, on the sale of its business to CBIZ, a national, publicly-traded professional business services firm.
This transaction highlights Equiteq’s position as the leading global provider of advisory services exclusively to firms in the knowledge-intensive business services sector.
Founder and Managing Partner at CMF, Thomas Bonney said, “CMF sought a committed partner who shared our growth-oriented vision of scaling our position as a premier service provider to private equity and their expanding portfolio. We found in CBIZ an advocate that will provide us with offices across the country, complementary tangential services and the resources to drive portfolio value creation in a more comprehensive way and on a national scale.”
Equiteq, a global consulting and IT services sector M&A specialist, is pleased to announce the sale of the UK based A&DC Group (“a&dc”) to PSI Services LLC headquartered in California. As leaders in behavioural assessment and development, a&dc provides consultancy services and a comprehensive range of ready-to-use, tailored and bespoke products across the talent management spectrum.
Equiteq acted as exclusive financial advisor to a&dc. The transaction completed on June 5, 2017.
The acquisition of a&dc strengthens PSI’s core Talent Assessment offering.
Nigel Povah, CEO of a&dc commented “When I started a&dc 30 years ago, I was passionate about providing great assessment and development content. The a&dc portfolio – with over 250 assessments – will continue its journey alongside PSI’s assessment technology, which will drive the delivery of our robust assessment content into the digital era.”
FIS sells majority stake in Capco to private equity
Clayton, Dubilier & Rice announced their acquisition of a 60% majority stake in Capco from FIS, a leader in financial services technology. Capco is the public brand for FIS’ management consulting business and specializes in business, digital and technology consulting services for the financial services industry. FIS acquired Capco for $292m in 2010 and will receive net cash proceeds of $477m from the sale, while retaining a 40% stake in the business.
New Mountain acquires OneDigital Health and Benefits
OneDigital, one of the top buyers that we identified in the HR space, announced that it has been acquired in an all-cash deal by private equity investor New Mountain Capital. New Mountain is acquiring a majority ownership in the business from Fidelity National Financial Ventures for a reported $560m. The investment will be aimed at providing strategic guidance and industry expertise, while helping drive OneDigital’s continued growth.
OneDigital is the United States’ largest provider of employee benefits services and offers employers a combination of strategic advisory, analytics, compliance support, HR capital management tools and comprehensive insurance offerings. The business serves 35,000 companies and manages c.$4 billion in premiums.
Equiteq is pleased to announce the sale of its long-term client, Aecus Limited, to The Hackett Group Inc. Aecus is an award-winning European consultancy that helps clients optimize business process outsourcing (BPO), IT outsourcing (ITO) and robotic process automation (RPA) through benchmarking and implementation consulting.
Equiteq acted as exclusive financial advisor to Aecus Limited and its shareholders on the sale of the business having previously worked with the company for over 8 years in a strategic advisory capacity. The transaction closed on April 7, 2017.
Discussing the transaction, Aecus Managing Director Rick Simmonds commented, “We are really excited by this – joining The Hackett Group represents a fantastic move forward for Aecus. The strength of The Hackett Group’s brand combined with the breadth of complementary services will enable us to serve our clients even more effectively and will provide our people with greater professional opportunities.”