ACS aims for 'permanency' in Europe
20 July 2009:
Following several small acquisitions since 2005 and some organic growth, ACS has gained traction in several European geographies such as the UK, France, Germany and Spain, and has quietly grown to become a $750 million revenue business. However, it is still a local, niche player in these markets, so if Europe is really to be seen as strategically important then ACS needs to do more to grow both its visibility and market penetration.
Aiming to establish a $1.5 billion operation by 2012
Blodgett's ambition is to double the size of ACS's European operation over the next three years to become a $1.5 billion business. Areas of growth are likely to be in the emerging southern and Eastern European markets such as Romania and Albania, where ACS sees a young, educated workforce and low-cost delivery opportunities for the European market.
While its competitors have been aggressively making bold moves to either break into new territories or expand market share, ACS has remained conservative in its acquisition strategy. Blodgett says, “We want to build permanency in Europe, and so have so far done it in a pragmatic way, which is different from our competitors. We are going to take a conservative approach.” This is something that has held the company in good stead so far (it has made around 100 acquisitions to date) and has ensured that it has not suffered from integration issues that are often associated with large deals.
Read more...
Source: Ovum