Sys Integration Cos. Are Possible Targets
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Who would be available? Computer Sciences' biggest rivals - IBM, Electronic Data Systems Corp. (EDS) and Andersen Consulting - are probably too big to swallow. But acquirers might get into the game by snapping up some smaller niche players. "If you want to come in a big way, one option is to acquire a bunch of smaller companies," analyst Newman contends. Some of the most attractive potential targets are in the system integration area, Puricelli says. These companies generally provide customized software applications and consulting services for specific types of businesses, like manufacturing or financial services. One possibility: Keane Corp., a Boston-based software-services company with 1997 revenues of $654 million. The company offers information- systems strategies and implementation services to large businesses, specifically to manufacturing, insurance and financial services firms, as well as to hospitals and long- term health-care facilities.
Cambridge Technology Partners Inc. (CATP), a Cambridge, MA-based provider of information-technology consulting and software development services, may also fit the bill. The company, which generated $407 million in revenues in 1997, caters mostly to businesses with large-scale information- processing and distribution requirements. Another potential target, according to Wheat First's Newman, could be American Management Systems Inc. (AMSY) of Fairfax, Virginia, which provides software as well as computer consulting and training services. American Management supplies applications software to financial and educational institutions, government agencies, and energy and telecommunications companies. |
