The services roll-up continues. IT services company Perot Systems Corp. (NYSE:PER), in the midst of being
acquired by Dell Inc. (NASDAQ:DELL) for $3.9 billion, is itself
acquiring BearingPoint Management Consulting (Shanghai) Ltd, a management and technology consulting company with offices in Shanghai and Beijing. Financial terms were not disclosed.
Established in 2001, BearingPoint China serves clients in China's energy, automotive, insurance and financial services industries. It had about $35 million in
revenues last year. Perot Systems recently won some contracts in China's healthcare and manufacturing sectors and launched a Web site in Chinese to support its expansion there.
Services deals are coming around. Last month, Xerox Corp. (NYSE:XRX) sais it's
buying document and BPO company Affiliated Computer Services Inc. (NYSE:ACS) for $6.4 billion. Xerox CEO Ursula Burns said the BPO market was a fragmented space. Last week, IBM Corp. (NYSE:IBM) said it's
acquiring Bank of America Corp.'s (NYSE:BAC) Wilshire Credit Corp., including the Wilshire mortgage servicing platform. A day after that, Sykes Enterprises Inc. (NASDAQ:SYKE) said it's acquiring BPO provider ICT Group Inc. (NASDAQ:ICTG) for $263 million.
The acquisitive ACS is a roll-up of many different companies and has about 74,000 employees. And Perot Systems, which has more than 23,000 associates, is a bit of a roll-up itself. In 2008, it acquired healthcare IT solutions provider Tellurian Networks Inc.; Ireland's Original Solutions Ltd., a 90-person company; and German SAP services provider HighQ-IT. In 2007, Perot acquired Canton, Mass.-based healthcare IT provider JJWild Inc. for $89 million. Also that year, Perot completed its acquisition of QSS Group Inc., a U.S. federal government IT services company, for $250 million in cash.
You can see more on the company history, which includes some mergers,
here.
The BearingPoint deal is subject to approval from U.S. Bankruptcy Court and the Chinese government.
According to The Deal Pipeline (subscription required), BearingPoint Inc., which filed for bankruptcy on Feb. 11, filed an amended disclosure statement for a liquidation plan on Oct. 5. Its biggest divestiture to date was the $1.76 billion sale of its North American commercial operations to PricewaterhouseCoopers LLP. Among other sales, the firm sold its North American Public Services business to Deloitte LLP for $350 million. BearingPoint listed $1.76 billion in assets and $2.23 billion in liabilities, according to The Deal Pipeline. -
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Will be interesting to see how this helps Dell / Perot Services. While any foothold in China is of value to companies such as Dell, $35M in revenues for BearingPoint suggests that they do not yet have a strong foothold/book of business for Dell to leverage.
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