FPT buys US-based tech advisory firm
Information-telecommunication-technology group FPT Corporation (FPT) has acquired 90 percent of the US-based tech advisory firm Intellinet Consulting (Intellinet).
PM Nguyen Xuan Phuc visits FPT's stall at Industry 4.0 Summit (Source: VNA)
The total value of the deal was reported at 50 million USD, according to FPT deputy general director Nguyen The Phuong.
FPT will pay 30 million USD in cash and the rest of the payment will depend on the performance of Intellinet over the next three years. The US firm recorded 30 million USD in revenue in 2017.
The latest deal is expected to help FPT improve its status and become a popular general tech solution provider with higher, more comprehensive value for customers varying from strategy advisory to maintenance in digital projects.
The cooperation between FPT and Intellinet will also allow the Vietnamese ICT firm to increase its business activities in the US market. In return, Intellinet hopes to become a global advisory firm.
“Accompanying global corporations in the context of the fourth industrial revolution has made us see the potential of working in strategy advisory and digitalisation,” said FPT chairman Truong Gia Binh on July 12.
“The latest deal with Intellinet is the solution for FPT to meet the demand for that segment. FPT is ready to offer general digitalisation solutions to global conglomerates and improve the status of Vietnam in the world’s ICT market.”
The US is FPT’s second-largest software importer. FPT earned 50 million USD from selling software programmes in 2017 to US customers, a yearly increase of 17 percent. The US customer file of FPT ranges from aerospace, medical and financial-banking to telecommunications and automobiles.
The software export sector has grown an average of 30 percent per year and is expected to contribute 50 percent of FPT’s total revenue in 2018. In the first five months of this year, FPT recorded 2.87 trillion VND (127.5 million USD) from software exporting, an increase of 27 percent year on year, and the figure accounted for 34 percent of the firm’s targeted total revenue.
Intellinet was founded in 1993 and is headquartered in Atlanta. The US tech firm is seen as one of the fastest growing tech advisory firms in the country based on their 2013-16 revenues, according to Consulting Magazine./.
VNS/VNA
