M&A to help FPT develop
Aiming to increase revenue from foreign markets by 40% in the next 3 years, FPT will develop both organically and inorganically.
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16/07/2014
In an interview by Investment Bridge Magazine, CEO of FPT Bui Quang Ngoc said the group would spend about USD 50 million per year on M&A. FPT expected to get two successful M&A deals each year. This goal was set after FPT succeeded in acquiring RWE IT Slovakia, a subsidiary of RWE, in mid-June.
As part of the agreement, FPT won a USD two-digit million contract within 5 years with RWE Group. FPT also had 400 foreign experts in SAP and ‘Smart Home’ solutions.
Mr. Ngoc thought that these would enhance FPT’s position in the European market and create opportunities for it to participate further in the utilities and infrastructure industry including power, water, gas etc. with major customers in developed markets.
RWE expected that with resources in Europe and Vietnam, FPT would provide them good quality IT services at reasonable costs.
In an interview by Business Forum, FPT CEO also stressed FPT’s concern at the moment was to promote M&A in foreign markets. The Corporation aimed at IT companies with technological capability, experienced consultants as well as large customer database in USA, Japan, Singapore and Europe.
In overseas markets, including Slovakia, FPT would maintain human resource with many experiences, relationships, skills ...to approach and provide its clients with services. Besides, it would also increase new manpower as well as upgrade administration in accordance with FPT’s HR development strategy.
Currently, revenue from foreign markets accounted for about 9% of the total revenue. This number would increase by 20% in the next two years.
"Service, Solutions and M&A will be focused by FPT in two next year”, Mr. Ngoc said.
"FPT desires to maintain 11% growth in Vietnam and gain 40% in foreign markets", FPT CEO stated.
