Global IT services firm DXC Technology is continuing its buying spree with the acquisition of the service business of EG A/S, one of the leading integrators of Microsoft Dynamics 365 in the Nordic region. The combination of EG with the existing DXC Eclipse business will extend DXC’s position as a leading global systems integrator for Microsoft Dynamics.
The acquisition of EG’s service division includes its Microsoft Dynamics, Infor M3 and SAP practices, which will be integrated into DXC Eclipse and DXC’s SAP practice. Financial terms were not disclosed. The transaction is expected to close in DXC’s fiscal fourth quarter ending 31 March 2019.
“The combination of EG with DXC Eclipse will extend DXC’s leadership as a Microsoft Dynamics 365 systems integrator, greatly enhancing our ability to address client needs in the Nordic region and globally,” said Mike Lawrie, DXC chairman, president and chief executive officer. “This also represents a significant investment for DXC in the Nordics, which is recognised as one of the most digitally capable areas in the world.”
Headquartered in Copenhagen, Denmark, EG’s service business was founded in 1977 and is a major Microsoft Dynamics partner for the region. The unit has around 570 employees across Denmark, Norway, Sweden and Poland.
“In DXC Technology, we have found a strategic partner with significant global capabilities that will benefit EG's customers as they embark on their digital transformation journeys,” said Mikkel Bardram, CEO, EG A/S. “In addition, EG’s employees will have an opportunity to contribute to the growth of DXC’s Microsoft Dynamics practice.”
EG offers mid-market and enterprise customers – some 4,000 in total – implementation and advisory services focused on ERP and CRM solutions, primarily within the retail, processing, manufacturing and construction industries.
This deal follows DXC's recent acquisition of Swiss-headquartered Eastern Europe-based digital transformation solutions firm Luxoft for around $2bn. DXC and Luxoft will offer “end-to-end digital transformation” by combining Luxoft’s digital engineering capabilities with DXC’s expertise in IT modernisation and integration, said DXC.
Luxoft provides digital strategy consulting and engineering services for companies across North America, Europe and the Asia Pacific region and has been growing its automotive software side with top car firms, especially in Germany.
DXC has acquired a number of other firms over the last year. It bought UK-based Microsoft Gold Partner eBECs and Australia-headquartered reseller Sable37 last spring. Sable37 and eBECS were combined with DXC’s Eclipse practice to enhance its digital transformation strategy.
And at the end of last year, it significantly extended the reach and capability of its ServiceNow practice with the acquisition of two leading ServiceNow partners. It acquired UK-based TESM, a global end-to-end ServiceNow partner, and BusinessNow, the largest independent ServiceNow partner in the Nordics.
