Bielefeld, Istanbul, Ascot: itelligence AG has strengthened its grip on the European SAP consulting market with acquisitions in Turkey and the UK this month.
The German firm, part of Japanese IT consulting conglomerate NTT DATA, says both moves reflect a "systematic growth strategy focusing on further international expansion."
- itelligence AG acquires Turkish SAP consulting company Elsys
- Deal exploits Germany-Turkey trade links, promises gateway to Middle East markets
- itelligence's UK subsidiary buys Blueprint Management Systems Ltd., London
- Boosts business analytics offering in UK
itelligence AG, which styles itself as the world's leading SAP partner for the mid-market , has taken a 60% stake in Turkish SAP consulting company Elsys.
Elsys, based in Istanbul, was founded in 2000 and employs around 180 staff. In 2011, it generated sales of around EUR 11.5 million.
The firm offers the full lifecycle of an SAP solution with license sales, consulting, maintenance and application management services, and it is strong in the automotive, fast moving consumer goods (FMCG), retail, textile, and pharmaceutical industries.
Herbert Vogel, CEO of itelligence AG, commented, "In Elsys, we have found one of Turkey's best SAP partners to further advance our internationalisation. We are therefore filling a strategic "white spot", comprising not just the market in Turkey, but also the Black Sea region and the Middle East.
"Elsys's product offering and corporate culture are an excellent fit for us and I am looking forward to working together with them."
Norbert Rotter, CFO of itelligence AG, said, "itelligence's investment in Turkey means the company is breaking new economic and cultural ground in the bridge between Europe, Asia, and Africa. We have selected and planned this acquisition very thoroughly.
"We have had good business relations with Elsys for years and anticipate positive effects for our international customers, especially in Germany. We will also exploit the advantage that Germany is Turkey's biggest trading partner by far."
Savas Komban, CEO of Elsys, said, "The corporate cultures fit together very well and we will benefit from the deep mutual understanding of SAP and consulting. Working together will create entirely new opportunities for itelligence and Elsys and for new markets and services to benefit our Turkish customers, our international customers, and our employees in equal measure."
itelligence AG will integrate Elsys into its Eastern Europe organisation, which will be headed by Executive Vice President, Head of Region Central & Eastern Europe and Head of Global Application Management, itelligence AG, Lars Janitz.
UK acquisition continues expansion strategy
Meanwhile itelligence AG has also acquired 100% of Blueprint Management Systems Ltd., London, one of SAP UK's leading BusinessObjects partners, through its Ascot-based subsidiary itelligence UK.
The firm says this acquisition represents a significant expansion in the range of services offered by itelligence in the UK in the growth segments of business analytics and SAP BusinessObjects.
Norbert Rotter commented, "In recent years itelligence has invested significantly in the UK market with the clear objective of becoming the No. 1 Partner of SAP. Our UK business is now the third largest Unit at itelligence worldwide with revenues of £40 million and 180 employees."
Stefan Ellerbrake, Director of Western Europe for itelligence AG said, "We see considerable growth opportunities in the UK business analytics sector and are convinced that the combination of our current business analytics activities with Blueprint Management Systems Ltd. will provide the basis for accelerated growth. The acquisition of Blueprint will make us one of the leading business analytics companies in the UK."
Blueprint was founded in 1993 and its 60 employees generated sales of £8.9 million in 2011.
It counts ING Bank, M & G Ltd. and Eurostar International Ltd. among its customers.
Chris Wigglesworth, Chairman, Blueprint Management Systems Ltd., commented "From the very first meeting we had with itelligence, it was clear that bringing the businesses together made perfect sense.
"Becoming part of the itelligence group presents exciting new opportunities for our staff and greatly increases the range of services we are able to offer to our customers. We look forward to playing a major part in the development of the itelligence UK analytics business."
Justin Brading, Managing Director UK, itelligence AG, said, "This acquisition will give us market- leading scope in the high-growth area of business analytics. This move will further enhance our capability to be the SAP expert partner that both our customers and SAP can rely on. With this move, we will enter new and important service industries such as the financial, the public and insurance sectors, which are central to the British economy."
Both transactions are subject to clearance under merger control regulations.