Equiteq advises Aecus Limited on its sale to The Hackett Group Inc.


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.”

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H1-B visa reforms could drive an acquisition spree from Indian IT Services firms

By Ramone Param, Associate Director, Market Intelligence & Buyer Coverage, Equiteq.

Earlier this week, the US Citizenship and Immigration Services (USCIS) announced that it would take a more targeted approach to site visits of H-1B requesters and issued guidance that entry-level computer programmer positions could not be presumed specialty occupations, a requirement for the issue of a H1-B. The Justice Department also issued a press release cautioning employers petitioning for H-1B visas to not discriminate against American workers. There is an expectation that an executive order will also be introduced to call for a further review of the H-1B work visa.

Indian IT Services firms expected to face increasing pressures from H1-B reforms

The tightening of U.S. visa rules under the new administration is expected to place increasing pressures on costs for the Indian IT outsourcing industry. Over 60% of the industry’s export revenue comes from the U.S. and this work is dependent on cheap non-American coders and engineers. These workers will typically use H1-B visas to work locally, while getting paid a lower wage as compared with local non H1-B employees. Although the H1-B visa system works via a lottery system, Indian outsourcers are considered to be the top recipients of these visas, with some believed to be using loopholes, such as filing multiple applications for individual workers, which are not available to smaller companies.

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Robust demand for M&A by corporates and private equity, and strong share price performance in the fourth quarter.

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By  Ramone Param, Associate Director – Market Insights & Buyer Coverage, Equiteq

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Global M&A activity across the Knowledge-Intensive Services sector, as tracked by the Equiteq Consulting M&A Index, remained strong in the final quarter of 2016. Deal volumes were broadly flat in comparison to a robust prior quarter and rose in comparison to the same quarter last year. The conclusion of the U.S. presidential race has been followed by sharp rises in investor confidence and the Equiteq Consulting Share Price Index has rallied strongly throughout most of November and December, outperforming both the S&P 500 and FTSE 100. The overall Equiteq Consulting Share Price Index is now rallying at an all-time high.

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As we anticipated, deal activity in the last quarter remained buoyant in the IT services sector. Appirio, was acquired by Wipro for $500m, positioning the buyer as the leading Indian technology services player in the cloud consulting space. Appirio was considered a prized acquisition opportunity amongst a range of potential suitors after a wave of deals left Appirio as one of the largest independent cloud consulting specialists remaining in the market.

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