Vietnamese tech firm FPT buys majority stake in US consultancy

Vietnamese tech firm FPT has picked up a majority stake of US-based consultancy Intellinet in a deal worth up to $50 million.

In a move to expand its offerings, FPT Corp, which is one of Vietnam’s largest tech firms operating in the ICT services, retail, telecommunications and education sectors, has bought a 90 percent stake in the US-based tech-focused management consulting firm Intellinet – in a base-line deal worth $30 million and up to $50 million depending on performance.

The acquisition reflects the ever-increasing landscape of one-stop strategy consulting and implementation service providers in an era of technological transformation, which is seeing consultancies significantly beef up their tech lines and vice a versa, with FPT highlighting its goal on its website to be a pioneer in digitisation through ‘development, application and transfer.’

“(Having become) a technology partner of global enterprises in the Fourth Industrial Revolution, we realise that there exists a huge demand in digital transformation consultancy and implementation services,” FPT’s chairman Truong Gia Binh said. “By making a strategic investment in Intellinet, FPT is now more than ready to provide comprehensive digital transformation solutions for top companies, elevating Vietnam’s position on the global technology map.”“We are thrilled to join the FPT family” Mark Seeley, Intellinet’s CEO said in turn. “By combining our business acumen, industry expertise, and technology execution, our teams can deliver more innovation and transformational solutions that will truly make a measurable impact on our clients’ businesses.” Intellinet’s Founder & Chairman, Frank Bell, added; “I am excited to be a part of this transaction and the opportunity it creates to grow Intellinet into the global technology leader we have always believed it had the potential to become.”

With a current staff of around 150 advisors across five offices in the US, and 2017 revenues of $30 million, Intellinet will be able to tap into FTP’s established global network, which includes a headcount of 32,000 employees with nearly 14,000 tech specialists providing services in 33 countries – generating revenues of nearly $2 billion, while FTP will be able to expand its suite of complementary services to include expertise in strategy and management consulting – as well as open a larger gateway to the US; it’s second-largest software market.

Under the strategic equity agreement, Intellinet will continue to operate as an independent unit while leveraging its major shareholder’s strengths, with its 90 percent $30 million cash price-tag potentially extending to $50 million depending on the performance of its business consulting practice in the coming three years. Founded in 1993, Intellinet has in the recent past been considered one of the fastest growing tech advisories in the US based on revenues.