BrazilCtac acquires Dutch IT firm and pulls out of French market
Dutch listed IT services provider Ctac has announced two strategic moves in a week. In its home market the firm is acquiring a majority stake in Oliver IT, while internationally, Ctac is pulling out of the French market following a strategic review of its local activities.
In the Netherlands, where Ctac was founded in 1992, the technology consultancy has per 1 January 2021 acquired a majority stake in Oliver IT, a specialist in integration, software development and web & mobile solutions. The bolt-on adds a team of around 40 employees generating annual revenues of €6 million to Ctac’s footprint.
“Onboarding Oliver’s knowhow, expertise and track record is a boost for Ctac as it expands our portfolio and our competences in integration, web and mobile solutions. We are extremely happy that we have been able to bond Oliver despite the effects of the worldwide pandemic,” said Henny Hilgerdenaar, Ctac’s chief executive officer.
He added that the deal aligns with the firm’s strategy to build market leading positions in the domains of: IT modernisation, connected intelligence, transformation & change management, security & trust and business transformation. “This deal will in particular bolster our consultancy activities,” said Pieter-Paul Saasen, Ctac’s chief financial officer.
For Oliver IT, the joining of forces adds scale and depth to its portfolio. “Scale is vital in today’s market,” said co-founder Gerben Moerland, with co-shareholder Martien Merks adding, “Thanks to this strategic move, we can both seize new opportunities and offer our clients more added value.”
The acquisition of the 51% stake is expected to be completed in mid-January. Oliver IT will operate as an independent part of Ctac.
A French exit
Meanwhile, following a strategic review of its portfolio, Ctac has decided to cease its activities in France, having been unable to nestle itself in a highly competitive space. France’s IT consulting and services market is dominated by a few large home grown players (Atos, Capgemini, Sopra Steria, etc) and also in the mid-market segment the competition for contracts is fierce.
As a result, Ctac’s office in Paris will be closed and contracts with all employees will be terminated. “Despite all efforts, the operation in France, has not been able to generate shareholder value on a sustainable basis,” explained Hilgerdenaar.
At a group level, Ctac’s strategy has been revised to focus exclusively on the Benelux market. The listed company (Euronext Amsterdam) operates with around 400 employees across offices in’s-Hertogenbosch (Netherlands) and Wommelgem (Belgium).
