Wednesday, December 12 2018

VietNamNews

FPT buys US-based tech advisory firm

Update: July, 14/2018 - 09:00
FPT and Intellinet managers signed an agreement on Thursday. The deal is valued at US$50 million and expected to improve the status of FPT in the US market. — Photo FPT
Viet Nam News

HÀ NỘI — Information-telecommunication-technology group FPT Corporation (FPT) has acquired 90 per cent of the US-based tech advisory firm Intellinet Consulting (Intellinet).

The total value of the deal was reported at US$50 million, according to FPT deputy general director Nguyễn Thế Phương.

FPT will pay $30 million 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 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 Trương Gia Bình on Thursday (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 Viet Nam in the world’s ICT market.”

The two sides will bring many creative, innovative digitalisation solutions that provide higher value for customers in the world based on the firms’ experiences, technological capabilities and understanding about industries, Intellinet general director Mark Seeley said.

The US is FPT’s second-largest software importer. FPT earned $50 million from selling software programmes in 2017 to US customers, a yearly increase of 17 per cent. 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 per cent per year and is expected to contribute 50 per cent of FPT’s total revenue in 2018. In the first five months of this year, FPT recorded VND2.87 trillion ($127.5 million) from software exporting, an increase of 27 per cent year on year, and the figure accounted for 34 per cent 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

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