Why not expoand this Thread to include Swedish Internet Stocks?
FRAMFAB: Consultancy agrees SKr1.5bn
buy
By Matej Vipotnik in Stockholm
In the largest deal of its kind to
date, Swedish internet
consultancy Framfab on Friday
announced it was buying
competitor Guide for SKr1.5bn
($175m).
The deal, which creates Europe's
largest internet professional
services company, reflects the consolidation between
traditional web-design companies staffed by designers,
marketers and consultancies with technical and
programming expertise.
Analysts say that as the internet has matured, corporate
web sites are switching from presenting information to
more interactive, e-commerce oriented pages. This has
increased their technical complexity, and consequently,
demand for expertise in the field.
"Framfab has been focusing on the front end of the
e-commerce sector. They were lacking the back-end
technical expertise. With Guide they are getting this
back-end expertise," said Odd Bolin, head of technology
research at Hagstomer & Qviberg in Stockholm.
"This is the first real step. We will see more acquisitions,
an upgrade in expertise, and more consolidation," Mr
Bolin said.
"We complement each other perfectly, both with regard
to clients, technology and communication. We . . . can
offer solutions for every specific part of our customers'
business processes," said Johan de Verdier, Guide chief
executive.
The new company will have more than 1,400 employees
in 20 or so offices across Europe. The client list includes
Volvo, Ikea, Electrolux, and Ericsson.
This is the third large internet consultancy deal in the
Nordic region in recent months. Razorfish and Icon
Medialab, two of the leading internet services firms, have
bought smaller competitors.
In a separate development, Framfab on Friday said it
was buying Mindfact, a German internet consultancy
with 105 employees. The German company will be
Framfab's base for expansion into Germany,
Switzerland, and Austria.
However, analysts warned that Framfab and other rapidly
growing internet consultancies will find it difficult to
expand their technical expertise at the pace at which
they expand their sales and design side.
"If Framfab, ICON Medialab and others keep growing at
the same rate, in two to three years they will have not
400 employees, but 6,000," Mr Bolin said.
He predicted the rapid growth of these internet
consultancies may over the next two years spur
consolidation among the larger IT services groups such
as Cap Gemini and TietoEnator.
Framfab shares gained 33 per cent to close at SKr1,001.
Its shares have risen sharply since it was listed in the
summer. |
