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.

Watson Wyatt continued its push into emerging economies with acquisitions in Argentina and 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.

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