DXC Acquires TESM and BusinessNow
|Implied Enterprise Value (EV) ($m):||Undisclosed|
- On October 5, 2018, DXC Technology (NYSE:DXC) subsidiary Fruition Partners announced two system integrator acquisitions: TESM Limited, a UK-based ServiceNow partner; and BusinessNow, the largest independent ServiceNow partner in the Nordic region.
- TESM is a global ServiceNow Gold partner founded in 2013, with over 200 ServiceNow consultants and 88 certifications. Denmark-based BusinessNow, also a ServiceNow Gold partner, was founded in 2014 and has 98 certifications.
DXC’s Software Ecosystem-Driven M&A Strategy
- TESM and BusinessNow are DXC’s second and third acquisitions in the ServiceNow ecosystem, the first being Fruition Partners.
- DXC acquired US-based Fruition Partners for $148 million in 2015. It was the largest ServiceNow-exclusive consulting firm, and the only ServiceNow Master Solutions Partner operating across North America and Europe. Contact us at firstname.lastname@example.org for a copy of our case study on this transaction.
- In recent years, TBP has seen consolidation in the ServiceNow SI market by global system integrators. Large players like Accenture, Atos, DXC, Fujitsu, and KPMG have started to acquire ServiceNow capabilities since 2015. After its acquisition of Workday-centric DayNine in September 2016, Accenture subsequently acquired three ServiceNow services providers in the following five months.
- Notably, DXC demonstrated a similar commitment to grow its other global software ecosystem practices. In April 2018, it acquired Sable37 and eBECS Limited to expand its Microsoft Dynamics 365 practice. Less than half a year later, it acquired System Partners, a Salesforce Platinum Consulting Partner headquartered in Australia.
Regional Focus is Key for Mid-Market Services Providers
- This transaction is the second Nordic region-focused acquisition announced in the past two months. In September, Infosys acquired FLUIDO, an independent Salesforce Platinum Consulting Partner with a strong customer and delivery footprint in the Nordic region, for $75.6 million.
- In 2017 alone, TBP tracked 11 ServiceNow SI acquisitions, more than half of which were executed overseas as outlined in the TBP report on M&A and Investments Trends in the ServiceNow Ecosystem.
Select SI Acquisitions in the ServiceNow Ecosystem
True Blue Partners is a boutique M&A advisory firm that serves lower mid-market enterprise software, service and solutions companies. It brings the rigorous strategic and financial perspective of bulge bracket firms with a company building approach and a steadfast partnership that only an independent boutique firm can deliver. For more information please visit www.truebluepartners.com or email us at info @ truebluepartners . com.