SoftServe, a global IT consulting firm, will consider further acquisitions to follow its 7 June deal for Hoverstate, President Healthcare, Retail and Financial services in North America, Adam Gabrault told Mergermarket.
It would make sense to acquire new technologies, for example in artificial intelligence field, Gabrault said. SoftServe aims to continue expanding the capabilities available to its customers and looks at new technologies that could help reach its targets, he said.
The business could acquire, partner or use other options to gain the technologies, he said, adding that expansion in undisclosed new geographies could also drive M&A deals.
When asked how the company identifies potential acquisition candidates, Gabrault said that in Hoverstate’s case, SoftServe was actively looking for a healthcare-sector acquisition, and that he already had contacts at the target company.
The cultural fit with a potential target is a key decision criterion for a deal, he said, declining to provide additional details on SoftServe’s acquisition strategy.
Prior to Hoverstate, the company acquired Polish enterprise technology firm Coders Center in January 2017 for an undisclosed sum.
SoftServe has been growing its undisclosed revenues at a year-on-year rate of 30%, Gabrault said. Its main market is the Americas, followed by EMEA and Asia Pacific; and its main verticals are healthcare and life sciences, banking and financial services, retail, energy and manufacturing, he said.
Founded in Ukraine in 1993, the company has headquarters there in Lviv, and also in Austin, TX; London, UK; Stockholm, Sweden; Wroclaw, Poland; and Singapore.
It has more than 12,000 employees in 15 countries, and has completed more than 20,000 customer projects for customers including Cloudera, Cisco [NASDAQ:CSCO] and Pearson [LON:PSON], according to its website.
SoftServe is led by its founders, who established the business to provide jobs for students finishing university, Gabrault said. He declined to provide information on its financing.
In the coming months, SoftServe will focus on integrating Hoverstate, which is expected to take a year and a half, he said.
Woodland Hills, CA-based Hoverstate is a full-service digital agency focused on digital strategy, mobile apps, web development and business applications with expertise in health insurance, pharmaceutical and life sciences sectors.
