A dozen deals in the services space, incl. 2 deals executed by SCD Advisory

M&A blog Nov-Dec: A dozen deals in the services space to finish the year, including 2 deals executed by SCD Advisory

1.??????Densu acquires Aware Services – an SCD Advisory's deal

Dentsu strengthens Customer Transformation & Technology capabilities with the acquisition of Aware Services, bolstering Merkle’s Salesforce and data practice offering. The acquisition will be part of Merkle, Dentsu’s technology-enabled, data-driven customer experience management business, and is an important step in its strategic plan to become the leading customer transformation partner in Australia.??Aware Services is an Australian-owned Salesforce, MuleSoft, and Tableau partner with data and analytics capability, working with a broad range of clients in both the public and private sectors.?The acquisition will bolster Merkle’s existing Salesforce and data and analytics practices, empowered by Dentsu which has more than 1,500 Salesforce trained staff and almost 3,900 Salesforce certifications. Aware will assist Merkle in better serving existing clients, while allowing Merkle to pursue its goal of sustainable growth with a newly expanded team.

2.??????Assystem acquires LogiKal, an SCD Advisory's deal

Assystem S.A. (ISIN: FR0000074148 – ASY), a major player in energy transition, has acquired the three sister companies making up the LogiKal group, purchasing 100% of the companies’ shares from their management.?Operating in the United Kingdom, Australia and Hong Kong, LogiKal specialises in project management and has strong digital expertise. It generates €17 million in annual revenue (65% in the United Kingdom and 30% in Australia), and has an operating margin of over 15%.?The acquisition of LogiKal will enable Assystem to accelerate its growth in the United Kingdom and to expand its service offering to its UK clients by incorporating a major project management element, in the same way as it has done for its French clients through its acquisition between 2017 and 2020 of three companies specialised in project management.

3.??????Engineering powerhouse instruct to be acquired by Canada's WSP

An Australian structural and civil engineering company with a prolific portfolio of projects ranging from the Sydney Airport redevelopment to the upgraded Sydney Fish Market has been acquired by Canada's WSP (TSX: WSP) for an undisclosed sum. Founded by former Arup director Ross Clarke in 2000, enstruct now has 75 employees with?offices in Sydney, Melbourne and Brisbane, working on landmark projects including hospitals throughout NSW, commercial projects such as Martin Place Metro, Cockle Bay Park and 700 Collins Street Melbourne, and major transport, education and defence works.

4.??????Quadrant to fund growth opportunities for Cevo, Arinco and D6

The three businesses will come together under a yet-to-be-detailed parent company. Cloud service providers Cevo, Arinco and D6 Consulting have partnered with Quadrant Private Equity to provide the trio with investment and new growth opportunities. The partnership will see investment placed from?Quadrant Growth Fund No.2 into the local teams of the Cevo, Arinco, and D6, the latter of which was formed six months ago under the brand?Digi6, in order to “deliver the best outcomes for its customers in their acceleration and innovation in the cloud”. Additionally, Quadrant’s managing partner, Simon Pither, and investment director, Peter Elkhouri, will both be joining the board of directors of the group, as well as board observer associate director Youngsoo Kim.

5.??????Accenture Acquires Fiftyfive5 to Boost its Customer Intelligence Capability in Australia and New Zealand

Accenture (NYSE: ACN) has acquired?Fiftyfive5, a customer insights and advisory business. The move will strengthen Accenture Song’s (formerly?Accenture Interactive) ability to help clients tap data insights and performance marketing to accelerate growth and innovation across Australia and New Zealand. Recognized by The Research Society Australia and recently named B&T Research Agency of the Year, Fiftyfive5 has a proven track record in delivering customer insight-driven strategy, customer insight optimized execution and performance measurement for some of the region’s leading brands. Accenture Song and Fiftyfive5 share a vision and passion for helping brands meet this new reality and capturing new opportunities for growth through insight-led strategy and decision making in anticipation of a?US$28.7 billion global customer analytics market by 2026.?

6.??????The Footprint Company (TFC) joins TSA Management

Dr Caroline Noller and The Footprint Company (TFC) join TSA Management to expand its carbon management offering. The Footprint Company manages one of the world's largest embodied carbon databases (The Green Book?) and have developed proprietary carbon management tools including The Footprint Calculator?. Caroline, Founder and CEO of The Footprint Company, is a world authority in embodied carbon management with over 20 years’ experience. TSA and TFC will together support organisations to deliver net zero carbon projects. The Footprint Company was founded in 2012. Previously, Caroline was the Head of Corporate Responsibility at GPT as well as Head of Sustainability at Lendlease. She currently Chairs the Materials and Embodied Carbon Leaders Alliance (Task Group 2 on embodied carbon benchmarking).

7.??????Vela Software Group, announced the acquisition of?3Q?and their global retail solutions portfolio.

3Q is comprised of Island Pacific, AdvanceRetail and Intelligent Retail business entities, and provides a comprehensive suite of end-to-end software solutions for retail businesses across the globe. Vela Asia Pacific, as part of?Vela Software Group?acquires, manages, and builds mission-critical vertical market software businesses. We are a portfolio of Wholesale, Distribution, Fashion, General Retail, Light Manufacturing, and Government software businesses that have a presence in Australia, New Zealand and Asia-Pacific. We provide vertical market software expertise, operational support and capital to help our businesses grow. Vela is an operating group of?Constellation Software Inc.?(TSX: CSU), a public company listed on the Toronto Stock Exchange.

8.??????EY acquires data & analytics specialist Bridge Business Consulting

Sydney-based data & analytics specialists Bridge Business Consulting has been acquired by Ernst & Young for an undisclosed sum. The purchase, which comes just one month after Bridge’s 10th anniversary, will see 19 professionals specialised in data & analytics cross to EY’s Business Solutions team. Bridge co-founders John Desmond and Robert Mazevski have been appointed as partners. Established in Sydney in 2012 and with a further outlet in Melbourne, Bridge provides data strategy, engineering and management services along with analytics and artificial intelligence offerings to clients across a wide range of sectors, including those in consumer, retail, financial services and telecommunications among others.

9.??????Digital consultancy Innovior joins forces with Probe CX

Australian digital consultancy Innovior has joined forces with Probe CX, with Innovior founders Tim Ryan and Jure Brkan to continue to lead the business. Customer experience outfit Probe CX has picked up Australia-based automation and AI analytics consultancy Innovior in a deal reported to be worth around $20 million. The acquisition, expected to be closed by the end of the month, will add around 130 members to Probe’s 18,000-strong headcount, including Innovior leaders Tim Ryan and Jure Brkan. Established in Melbourne by Ryan and current managing director Brkan in 2016, Innovior has since spread to Sydney and the Philippines, serving clients in the energy & engineering, financial services, government, education and health & aged care sectors in areas such as data & analytics, intelligent automation, experience design, and managed services.

10.??New Era continues acquisition spree with Perth's 4Logic

Perth-based IT services provider, 4Logic has been snapped up by global managed services and technology solutions provider, New Era Technology.?4Logic has been operating in the market since 2011 under the leadership of Sam Kendall and James Nowill. 4Logic services clients of all sizes in industry sectors ranging from health, engineering, mining and resources through to education, government and not-for-profit. New Era has been busy snapping up managed service providers across the country including CrossPoint Technology and Newcastle-based OAS.

11.??Globant acquires Asia Pacific’s leading digital commerce specialist eWave and expands its presence to Australia and Asia

A digitally native company focused on reinventing businesses through innovative technology solutions, announced the acquisition of?eWave, an Australian-born digital commerce experience consultancy with strong expertise in Adobe and Salesforce′s commerce solutions. With this acquisition, Globant reinforces its global leadership in digital and cognitive transformation and expands into Australia and several Asian countries.?Founded in 2009 in Australia,?eWave?operates in Europe and Asia with offices in Sydney, Melbourne, Hong Kong, Singapore, London, and Paris and centers of excellence in China, Eastern Europe & the Philippines. With over 200 collaborators,?eWave?implements end-to-end digital commerce transformations including CX design, platform engineering, optimization, and growth in several industries such as Health & LifeSciences, Consumer Packaged Goods, Retail, and Beauty. Its B2C and B2B client portfolio includes leading companies such as Canon, L’óreal, Nike, Coca-Cola Amatil, and Cochlear.?With the addition of?eWave?to its family of companies, Globant strengthens its expertise in Salesforce Commerce Cloud and Adobe Commerce.

12.??Egis to acquire Calibre Professional Services to expand market-leading multi-discipline engineering capabilities across ANZ

Calibre Professional Services is a leading provider of end-to-end sustainable engineering and consulting services focused on urban development, water and roads, and building services and structures across Australia and New Zealand. With a team of over 400 people, the acquisition of Calibre Professional Services enhances Egis' engineering capabilities and strengthens its unique end-to-end service offering in Australia and New Zealand in its core sectors of buildings and cities, transport, and energy and water. Egis is an international player active in the consulting, construction engineering and mobility service sectors. We create and operate intelligent infrastructure and buildings capable of responding to the climate emergency and helping to achieve more balanced, sustainable and resilient territorial development. With operations in 120 countries, Egis places the expertise of its 18,000 employees at the disposal of its clients and develops cuttingedge innovation accessible to all projects. Through its wide-ranging fields of activity, Egis is a central player in the collective organisation of society and the living environment of citizens all over the world.

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