(AOF) – Sopra Steria has finalized the acquisition of Assua NV, and its operating subsidiaries Tobania NV and Python Predictions BV. The acquisition project was previously announced on November 17, 2022. This acquisition brings the technology group into the club of the main players in a market considered strategic in Europe due to its potential and the presence of European institutions,
It will make it possible to extend the coverage on the Belgian market (French-speaking and Dutch-speaking areas), to double the market share in order to appear among the main market players (combined turnover of more than 200 million euros) and to benefit from commercial and operational synergies.
Assua NV enters the scope of consolidation of Sopra Steria on March 1, 2023.
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Key points
– One of the 5 European leaders in digital transformation born from the merger in 2014 of Sopra and Steria;
– Company organized into 4 businesses generating €4.3 billion in revenue: systems consulting and integration (61%), solution publishing (15%), business process services (15%) and infrastructure and cloud (19%);
– European presence, in France (48% of revenues), in the United Kingdom (13%), the other Europe division with strong positions in Germany (31%) and the rest of the world;
– Business model: to be, in Europe, the strategic partner of major administrations,
financial and industrial operators and strategic companies by supporting them in their digital transformation and preserving their digital independence;
– Shareholders’ agreement between the founding families Odin and Pasquier and the managers, i.e. 22.3% of the capital and 33.6% of the voting rights, ahead of the employees (4.8% and 7.8%), Pierre Pasquier chairing the 15-member board of directors and Cyril Malargé being general manager;
– Healthy balance sheet with debt reduced to €345m compared to €1.8bn in shareholders’ equity at the end of June.
Challenges
– Strategy based on a strong positioning in Europe, on the development of solutions (target of 20% of revenues in the publishing and integration of solutions), on consulting (target of 15% of revenues), the integration of medium-term and aiming for medium-term annual revenue growth of between 4% and 6%, an operating margin of 10% and free cash flow of between 5% and 7% of revenue;
– Innovation strategy:
-monitoring technologies and their uses ensured by the Digital Champions, innovation missions given to project teams, hackathons open to customers and partners, demonstration, ideation and codesign spaces,
– targeted partnerships (startups, universities, research laboratories, major publishers such as Axway and GAFAM, Campus Cyber France)
– entry into the capital of start-ups, particularly in cybersecurity;
– implementation of 2 development platforms, one for the cloud, the other for blockchain, artificial intelligence and machine learning;
– Environmental strategy with the objective of zero net GHG emissions in 2028:
– 3 stages: zero net emissions for direct activities at the end of 2022, for indirect activities (waste, journeys) at the end of 2025 and purchases of goods and services at the end of 2028,
– support for customers in their low-carbon transition;
– Strong positioning in “cloud computing” (cloud computing), big data (management of data volumes) particularly in defence, the public sector and aeronautics;-
– Acceleration in artificial intelligence: partnership with OVH Cloud, participation in the Confiance.ai collective, etc.;
– High visibility with the recurrence of turnover (more than 40%).
=/ Challenges /=
– Towards a takeover bid, in the 1st quarter of 2023, on CS Group, which will strengthen the digital services and critical systems business for defense & security, space and nuclear and will be accretive to earnings per share from the 1st year;
– Disposal of the 32% stake in Axway, i.e. a negative impact of €25 million before tax;
– After a 7.7 increase in revenues at the end of September, raising of the 2022 objectives: growth in turnover of 7%, operating margin rate between 8.5% and 9% and net free cash flow from the order of €250 million.
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