:  Subscribe   :   Page  6  : Feature   :  June 2007    Go to page:  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16           Previous Page      Next Page

Atos Origin ends takeover talks and reports rise in revenues     Atos Origin is to continue the implementation of its transformation plan on its own.    While announcing its unaudited revenues for the three months ended 31 March 2007, the company said it has now finalised the review of strategic options, and has terminated all discussions with third parties. No binding offers had been received at the end of the period set by the company, and the Supervisory and Management Boards unanimously concluded that it was in the best interest of all group stakeholders to pursue     company's share price by as much as 16.4% in heavy volume after a delayed start to trading caused by an automatic trading suspension.    Atos Origin said it is fully committed to the implementation of its transformation plan, with three objectives over three years: firstly to accelerate organic growth; secondly to improve efficiency; and thirdly to operate as a global company.    Revenues for the three months amounted to €1.435bn, representing a 6.9% increase on a reported basis and a 2.5% increase on a constant scope and exchange rate     basis. Revenue growth was above expectations for the quarter, thereby underpinning the group's objective of 8.5% top line growth in 2007.    Bernard Bourigeaud, CEO of Atos Origin, said: "We confirm our target of doubling our operating margin in absolute value by end 2009, and with a solid client base, strong recurring revenues and a healthy financial situation we look to the future with confidence."    Execution of the transformation plan is already enjoying solid momentum, Atos said, notably in global offshoring where the initial 2009 target of     6,100 staff has been increased to 8,000 based on increased demand from major country organisations.    The integration of Banksys is also proceeding ahead of plan. The Group will look to further accelerate its development in the payment segment and to participate in the consolidation of the sector, building on its successful Atos Worldline activity, already a pan-European leader.    Atos Origin is also exploring opportunities to strengthen its presence in Asia.           and accelerate the transformation strategy the company announced in February of this year.    Media reports, citing unnamed sources close to the deal, said the talks collapsed on price. Atos Origin didn't comment on the reason for the failed negotiations.    The decision, which ends lengthy on-off negotiations with potential buyers ranging from private equity firms to industrial buyers, including domestic rival Capgemini, plummeted the

Consulting firms are now major acquisition targets     Deal activity in the consulting sector has been accelerating – and the most likely acquirer of a consulting firm is an investment house. These are just some of the key findings to emerge from a new report published by consulting M&A specialists Equiteq.    Tracking M&A activity within the consulting market, the report shows that there were 602 sales of consulting firms in Europe during the period 2002 - 2006. In the comparable period the US market produced 598 deals, albeit bigger deals than their European counterparts. Within Europe the average deal size is running at £20m –     and most noteworthy of all, the rate of dealflow has been accelerating. This is also true of the P/E and sales ratios being used to value firms.    Taken in combination, these trends suggest now is a timely point in the economic cycle to be selling a consulting business. But who would be a potential buyer?    The most high-profile acquisitions of late have been those involving the acquisition of one consulting firm by another. Examples include Detica’s acquisition of m.a.partners and the recent announcement that Hitachi Consulting is acquiring Impact Plus.     However the Equiteq research shows that the most prevalent buyers in the last year were actually investment houses, with consultancies and business services firms following up as the second and third most likely acquirers of a consulting business. But there is clearly also an appetite amongst outsourcers and software firms to extend their capabilities into the consulting sector, reflecting the trend for large consulting firms to increasingly offer outsourcing services and vice-versa.    In all likelihood it is the continued buoyant     state of the economy, combined with the range of organisations interested in acquiring such firms, that is driving activity levels within the consulting M&A space. But how long can this last? Equiteq director Paul Collins commented: “The consulting M&A market has reached its highest peak since the dot-com boom of the late 1990s. If you are the owner of a consulting firm who has been considering selling your business and reaping the benefits of your hard work – there has never been a been a better time to sell than now.”    Related link:        Consulting Partners and shareholders invited to join a free conference call with Paul Collins on the : subject of M&A activity in the consulting market.