Vietnam FPT acquires 90% stake in US consulting firm Intellinet
The acquisition is in line with FPT`s strategy to expand the company`s footprint in the US, the Vietnamese software developer said.
Vietnam's leading IT service provider FPT acquired 90% stake of U.S.-based consulting and technology firm Intellinet in a deal worth US$30 million, FPT announced on July 12.According to Nguyen The Phuong, FPT's vice general director, FPT will initially pay US$30 million for 90% stake of Intellinet and then increase that price depending on the business performance of the consulting unit in the next three years, which could take FPT's total investment in the deal to US$50 million.
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Under this agreement, Intellinet will continue to operate as an independent organization, however, the two sides will be able to leverage each other's strengths.
With this new partnership, Intellinet enhances FPT's offerings with strategy and management consulting capabilities and becomes part of a company with deep offshore capacity, focusing on digital transformation.
"By combining our business acumen, industry expertise, and technology execution, our teams can deliver more innovation and transformational solutions that will truly make a measurable impact on our clients' businesses," stated Mark Seeley, Intellinet's CEO.
The US is currently FPT's second largest market for software exports, generating profit of US$50 million in 2017, up 17% year-on-year. The company has been providing technology services for nearly 200 US customers from various business domains, including aerospace and aviation, healthcare, banking and finance, telecommunications, retail, and automotive.
In 2019, FPT expects its revenue in the US market to exceed US$100 million.
In the first four months of 2018, FPT recorded revenue at VND6.52 trillion (US$285.2 million), equivalent to 106% of the accumulated target, while its pre-tax profit of VND1.09 trillion (US$47.7 million) is equal to 118% of the accumulated target.
Intellinet was founded in 1993 and had revenue of US$30 million in 2017, which was regarded as one of the technology firms with highest growth rate in the US in period 2013 - 2016 by Consulting Magazine, it claimed. The firm serves many of the US Fortune 500 companies, with its headquarters located in Atlanta.
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