BCG acquires Spanish data science consultancy Kernel Analytics

Boston Consulting Group (BCG) has acquired Kernel Analytics, a data science and analytics consultancy with offices in Barcelona and Madrid.

As part of the integration, Kernel Analytics and its around 100 employees will be integrated into BCG Gamma, BCG’s data science and analytics powerhouse dedicated to data-driven insights. The division helps its clients across sectors harness the power of advanced analytics techniques tools, such as artificial intelligence, machine learning, deep learning, text analytics, simulation, and image analytics, to improve business performance. 

“BCG Gamma builds powerful data and AI-driven solutions for clients within nine to twelve months….. the gains from data analytics can be substantial, easily representing 1% to 3% of company turnover,” explained Sylvain Duranton, a Paris based senior partner who founded BCG GAMMA in 2015. “This transaction brings us Kernel’s deep know-how in key areas such as asset and revenue management, customer value management and supply chain.” 

Rich Lesser, Boston Consulting Group’s chief executive officer, added; “BCG Gamma is one of the most exciting parts of our business, and we expect the market for advanced analytics to continue growing rapidly.” 

This rapid growth comes at a time when leveraging fact-based strategies to unlock value is at the top of executives’ agenda. Analysing large and complex data sets helps companies to build winning strategies, and groom a culture of innovation and radical change. As a result, the market size for business analytics is projected to grow at a CAGR of 7% from 2019 to 2022, according to one estimate, to a value of over $70 billion by 2022.BCG Gamma currently has a team of 650 data scientists and analytics experts, across a dozen countries, including the recently added locations of Canada (May last year) and Poland (July last year). Inorganic growth has also played a role in the unit’s growth – Kernel is the second acquisition in 2019, following the bolt-on of The Simulation Group, a technology and software company in Australia with 20 professionals. 

Founded in 2013, Kernel Analytics has seen rapid growth in the past three years. In 2017, the latest year for which data is available, the company generated revenues of €4.8 million, up 37% on the year previous. Commenting on the joining of forces with BCG Gamma, Pau Agulló and Borja Auria, two of Kernel Analytics’ founders, said, “Joining BCG gives us the opportunity to tackle the most challenging projects in the field of data science, bringing state-of-the-art solutions to top companies worldwide and increasing the ability to transform companies holistically.”

Reflecting on the latter point, Llorenç Mitjavila, a Partner at BCG and Head of BCG Gamma in Iberia, stated “We believe that competitive advantage exists at the intersection of data science, technology, people, and deep business expertise.”

BCG Gamma is one of BCG’s several subsidiaries. The others are BCG Digital Ventures, a digital and creative agency; BCG Platinion, a technology implementation and IT architecture unit; and BCG MAYA, a digital marketing consultancy.

In other deals in Spain’s consulting market, Duff & Phelps earlier this year doubled its team in the country with the acquisition of Forest Partners.