Acquisition of Industry-Specific Capability Dominates M&A Activity
by Rachael Stormonth
In June 2008, eighteen M&A announcements were made by vendors tracked by NelsonHall. While Watson Wyatt made a number of acquisitions to build capability in emerging markets, the major theme remained the acquisition of industry capability.
Acquisition of industry-specific capability is critical as suppliers compete by increasing their industry sector go-to-market emphasis and build deeper and deeper industry-specific knowledge. In response to this trend, even vendors with considerable expertise in a sector are continuing to enhance their capabilities further by acquisition. For example in June, ACS continued to build its transportation management capability, an area that has been a major strength of the company in recent years, and Capita strengthened its housing administration capabilities in local government, while Cognizant began to build a consulting capability in the media sector.
- ACS Completes Acquisition of Transportation Management Systems
- Capita Acquires IBS to Enhance its U.K. Local Government Capability
- Cognizant Acquires Strategic Vision Consulting to Extend Consulting Capabilities for the Media Sector
Watson Wyatt continued its push into emerging economies with acquisitions in Argentina and South Africa:
- Watson Wyatt Acquires Marcu & Asociados to Enhance Actuarial Consulting Capability in Argentina
- Watson Wyatt Acquires Stake in Fifth Quadrant to Enhance Consulting Capability in South Africa
NelsonHall's Tracking Service provides details of contracts, M&A activity, and financials covering over 300 vendors. For further details contact Rob Hughes.
