French-origin consultancy Wavestone expands in UK and US with deal

French listed consulting firm Wavestone has continued its international growth with the acquisition of Xceed Group, one of the UK’s fastest growing IT consultancies. The deal adds 60 professionals to Wavestone’s footprint in the UK, Scotland and the US.

The acquisition is part of Wavestone’s strategic plan for 2021, which aims for an accelerated growth path and a further elevation of the firm’s brand in order to be positioned in the top league of management and IT consultancies globally. With 2,600 consultants based in offices on four continents, Wavestone is already one the globe’s larger consulting firms, and one of the largest management consultancies with French origin. 

“With this merger, Wavestone not only bolsters its footprint in London and New York, but also enhances its ability to address global programmes. Xceed also enriches Wavestone’s client portfolio with complementary global accounts across the financial services industry. We saw in our discussions that Xceed and Wavestone share identical values, which is a key success factor for our project,” said Reza Maghsoudnia, Strategic development director of Wavestone.

Terms of the acquisition have not been disclosed by either party. Xceed Group recorded consolidated revenue of £13.3 million (approximately €15.3 million) in its latest financial year, up 8%, and an adjusted EBITDA margin of over 20%. The Flexible Infrastructure Managed Services (FIMS) arm of Xceed Group has been excluded from these figures as the unit is not part of the Wavestone deal. FIMS has been carved-out of Xceed Group and retained by its current shareholders.

The move adds a headcount of 60 employees to Wavestone’s footprint, spread across London and New York, with the vast majority located in London. “Wavestone and Xceed together make a powerful combination and this is really good news for Xceed's clients and staff. The two companies provide complementary services and share a common footprint in the financial services sector. It will also allow us to benefit from a larger business strike force, with a greater international dimension. Wavestone have an exciting growth plan and I am very pleased that the team at Wavestone recognises the part that Xceed can play in that plan,” commented John Casserly, CEO and shareholder of Xceed Group.

Casserly and the other shareholders of the company will support the merger during a 6 to 12 month transition phase, in order to ensure the successful integration of the company within Wavestone. Xceed's activity will continue to be driven by the current leadership team, which consist of Andy Boyes, Jim Hennigan, Sridhar Vedala, Stuart Riley and Tariq Surty. 

Established in 2003, Xceed Group is one of UK’s fastest growing technology consultancies – last year it received its third consecutive listing in the Sunday Times Lloyds SME Export Track 100 – a list that ranks the UK’s top 100 SME’s with the fastest growing international businesses. Xceed Group generates 80% of its revenues in the financial services sector, with a focus on retail banks, insurance companies and financial data processors. Its services include digital transformation and the planning and delivery of complex IT change programmes, with offerings across the majority of technology areas.

“This acquisition accelerates the international development of Wavestone and will play a key role to enrich Wavestone’s value proposition in the UK and the US and will help to develop these markets,” concluded Pascal Imbert, Chairman of Wavestone’s Board.

Meanwhile in France, Wavestone was last year named the best consulting firm to work for in the country, ahead of the Big Four and other major rivals.