Feeds

$87 million for Nordic IT services firm

Consolidation gets serious

  • alert
  • submit to reddit

Seven Steps to Software Security

TietoEnator, the Nordic region's largest IT services provider, is paying $87 million for Swedish IT consulting firm Ki Consulting & Solutions, a 770 employee organization specializing in integration, application management and development of telecom IT systems. The announcement came after TietoEnator's closest Nordic rival, WM-Data, paid $234 million to acquire Finland's Novo Group.

Although the depressed IT market in the Nordic countries is behind much of the consolidation in the region, this has been accelerated of late by the increased presence of US and European IT services companies that have broken into the market.

Vendors such as WM-Data are also facing increasing competition from large US rivals such as IBM Global Services, Accenture and Hewlett-Packard for lucrative Nordic-wide and global contracts originating from the region. These larger services firms are increasingly chosen by some of the most prominent Nordic clients because they can provide a much better global reach of services.

To truly compete with the US companies, Nordic firms need to expand their global presence so they can support large Nordic clients overseas. For example, WM-data's lack of global reach has forced the company to refrain from bidding on a $300 million outsourcing contract with Scandinavian airline SAS, with which it already has a $68 million IT services framework agreement.

Unfortunately, at the present time it seems that neither TietoEnator nor WM-Data is interested in overseas expansion, and both have dismissed suggestions of a merger with each other or other large Nordic players such as EDB Business Partner, Ementor, and Maersk Data.

Although all these companies are acquisitive now, their inability to move out of the Nordic region may see them lose out on some of the region's most prominent deals as companies such as IBM, CSC and Accenture increase their efforts. Although large, and growing acquisitively, the Nordic players are far from safe.

Related Research
The IT Services Outlook

Boost IT visibility and business value

More from The Register

next story
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.