Equiteq sells behavioural assessment and development consultancy to PSI Services LLC


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.”

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Artificial Intelligence developments are transforming customer experience

By Ramone Param, Associate Director, Equiteq.

We were pleased to recently attend the Salesforce World Tour in London and Boston, where we listened to speeches from Salesforce President, Keith Block, along with senior members of IBM Watson and Amazon Web Services. These talks focused on the transformation of customer experience as part of the so-called ‘fourth industrial revolution’. This revolution is being characterized by the convergence of cloud, social, mobile and technologies like the Internet of Things (IoT) and Artificial Intelligence (AI).

This trend is notably being observed through the development of eCommerce and smart devices, which now utilize predictive marketing and advanced data analytics. This technology is expected to become increasingly sophisticated with the rapid advances in AI.

Percentage of surveyed companies using or planning to use AI in the following ways

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Creating a C-suite to build equity value

If you own a knowledge-led services firm in a sector such as consulting, IT services or media and you want to grow revenues to, say, $30m, it is unlikely that the expertise of the founders will be able to drive this. What you need is a team of specialist C-suite executives on board.

However, at some stage a founders-only team will put a break on growth. Here are three reasons why founders maintain the status quo and fail to see the damage it may be doing to their business:

  1. Growth creeps up on you so you don’t notice the degree to which the requirements have changed

During the start-up phase your main focus will be delivering on your particular domain expertise, but as time goes by you’ll spend more time on anything from finances to dealing with people issues.

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April 2017: Consulting M&A Update

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

SNC-Lavalin acquires Atkins

SNC-Lavalin is acquiring British engineering consultancy Atkins for £2.1bn ($2.6bn). The offer represented a c.35% premium to the undisturbed closing price of Atkins prior to acquisitions talks were announced. As highlighted in our January market update, CH2M had been rumored to be in discussions with Atkins about a possible merger earlier in the year.

The acquisition would boost the Canadian engineering and construction firm’s European revenue as it emerges from a self-imposed freeze on acquisitions in 2015. The deal is expected to expand SNC’s projects outside the energy industry, while oil prices continue to remain significantly below their 2014 levels.

In combination with John Wood Group’s acquisition of Amec for £2.2bn ($2.7bn) last month, the deal represents a consolidation of the UK engineering consulting market, a trend that we anticipated globally in our latest Engineering M&A Report.

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Equiteq’s tenth annual review of the global consulting M&A market highlights that deal activity has reached a nine-year high

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

The Equiteq Global Consulting M&A report is the most comprehensive publicly available study of the knowledge-intensive services industry.

The review covers deal activity and equity market trends across fives consulting segments: Management Consulting, IT Services, Media Agencies, Engineering Services and Human Resources. Equity market trends are analyzed through the Equiteq Consulting Share Price Index, the only published share price index for the industry.

Strong deal activity

In 2016, the number of completed transactions in the consulting sector nudged up to reach a nine-year high. This was in spite of the restraining influences of slowing growth in global GDP, the UK’s vote to Brexit and the US Presidential election, which caused a slowdown in the preceding quarters. Activity from both strategic and financial buyers swiftly bounced back, and the year ended with conviction and momentum that has carried into 2017.

The top consulting segments for deal activity were the rapidly evolving Management Consulting, IT Services and Media Agency segments.

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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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March 2017: Consulting M&A Update

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

Oracle reportedly exploring Accenture acquisition bid

According to a report by The Register, Oracle has hired consultants to conduct due diligence research on acquiring Accenture. Accenture is a major Oracle partner, while Oracle has a material services business which operates alongside its software offering. The combination would significantly enhance both companies position in their respective markets, creating a leading provider of end-to-end digital transformation products and services.

A deal with Accenture would follow Oracle’s recent acquisition of NetSuite for $9.3bn and its acquisition of PeopleSoft in 2005 for $10.3bn. With Accenture’s market cap at over $77bn, the deal would be by far its largest acquisition to date.

Oracle has been focusing on its cloud business, but is still considered to be behind market leaders Amazon Web Services, as well as Microsoft, Google and IBM. Following reports of the deal, Accenture’s stock fell, with some equity analysts raising concerns about the deal’s implications for Accenture’s independence and the risks to Accenture’s strong relationships with Oracle’s competitors like SAP, Salesforce, ServiceNow and Workday.

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