Hewlett-Packard Co has bought the IT services unit of the German industrial giant ThyssenKrupp for a reported 340m euros ($427m).
HP came out on top of a bidding process for Triaton GmbH in which it competed with Cap Gemini Ernst & Young, CSC, Deutsche Telecom’s T-Systems unit, IBM, and Tata Consulting Services.
The acquisition of Dusseldorf-based Triaton is thought to be HP’s largest ever pure services buy. Triaton is one of Germany’s largest independent IT service providers, with 2003 revenue of 370m euros ($465m) and 2,200 staff. Most of Triaton’s employees are based in its 20 German locations, but it has between 200 and 300 international staff working in its bases in the US, Singapore, China, Brazil and France. As part of the deal, Triaton will continue to be a preferred supplier to Thyssen until 2011.
HP said the acquisition, which is subject to regulatory clearance, would give it a wide portfolio of customers. Speaking to ComputerWire, HP’s German services head Joerg Menno Harms said: Its competencies reach from consulting to outsourcing, with strong SAP knowledge and hosting as well as a lot of experience in vertical applications in industries such as steel, chemical and automotive.
German annual revenue for HP as a whole is estimated at around 5bn euros ($6.3bn), and prior to the acquisition it had a headcount of 3,200 people in its services unit in Germany, working on supporting installed infrastructure, SAP support, and managed services. Harms claimed the deal did not overlap much with its incumbent operations. When integrating Triaton, we will look for growth rather than cost benefits to capitalize on the enhancements this acquisition brings, he said.
HP refused to confirm the purchase price, but it is being widely reported at around 340m euros ($427m). The purchase price/sales ratio of 0.92 points to a much higher valuation than comparable European acquisitions in the IT services space, such as Cap Gemini Ernst & Young’s acquisition of Transiciel in October 2003, though the valuation of IT services firms has increased in recent months.
This article is based on material originally published by ComputerWire