M&A Shakes Up Consulting Firms in Spain

M&A Shakes Up Consulting Firms in Spain

M&A Shakes Up Consulting Firms in Spain

Spain has seen a slew of M&A deals in the last year, and the outlook is for more of the same, with sectors ranging from banking to tourism in investors’ sights. The consultancy industry is also experiencing restructuring as foreign firms look for partners in a business where growth continues to outpace the Spanish economy as a whole.

So what do Spain’s consulting firms have to offer potential overseas investors? Proven expertise, commitment to innovation, and a gateway to the key Latin American market.

NTT Data Corporation’s recent acquisition of Spain’s Everis will give the Japan-based company the opportunity to accelerate its globalisation plans and increase its portfolio of IT services.

EVERIS OPENS LATAM DOOR FOR NTT DATA

Everis is one of the largest independent Spanish consulting and IT services providers, with a headcount of over 10,000 consultants worldwide. The firm’s expansion has been through organic growth since it began operations in 1996.

With more than 1,000 clients in sectors like banking, telecommunications and public, Everis is a good fit for NTT Data, which operates in similar sectors across the globe. NTT Data has largely focused on Europe and the US, but is working to drum up business where its presence is thin, such as Latin America. The tie-up with Everis will give NTT Data access to major local clients across that region as well as in Spain.

Furthermore, it will be in a position to pitch for business with the multinational companies based in Latin America.

And for Everis, its integration into a bigger global group will provide opportunities to develop larger and more complex projects. It will now have the financial muscle to compete with industry giants such as IBM. So a win-win situation for both parties involved!

SPAIN CONSULTING FIRMS ON THE ACQUISITION TRAIL

While some Spanish consulting companies are takeover targets, others are keen to pursue their overseas expansion ambitions and are on the acquisition trail.

After setting up shop in the US in 2009 and Mexico in 2011, Efron Consulting has now expanded its operations to Colombia, buying local consultancy firm Consult Soft and its US affiliate CS Corp. Consult Soft specialises in consultancy services for the financial sector and is an expert in Oracle technology.

Amongst Efron’s clients are Spain’s two biggest banks, Santander and BBVA, both of which have substantial operations in Latin America and the US. So the potential for synergies from the Consult Soft deal are substantial.

Efron’s next port of call is likely to be Canada, where it plans to buy a local consulting firm.

For information on Spain’s consultancy industry, contact corporate law firm Argali Abogados.

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