EPAM Systems acquisition frenzy continues with the acquisition of Just-BI – May 14, 2021
EPAM Systems, Inc. (EPAM – Free Report) recently acquired Business Intelligence (BI) design solutions provider – Just-BI – to strengthen its rich portfolio of data, BI and advanced analytics services.
The agreement will also strengthen EPAM Systems’ ability to consult with customers in the EU and the APAC region and provide specialist assistance in consumer goods, retail and energy.
Valentin Tsitlik, Vice President, Technology Solutions, EPAM Systems, said, “This (the agreement) will also create significant depth for our SAP / S4HANA expertise in the market, allowing us to support more complex and global programs. . Together, we will create new opportunities to drive digitalization and help our customers become more product and data-driven organizations. “
In fact, the acquisition comes closely with the takeover of cybersecurity services company White Hat (May 4, 2021).
In particular, acquisitions have been one of the main growth strategies of EPAM Systems. Since its inception, the company has acquired 21 companies. The acquisitions have enabled the company to enter new markets, diversify and expand its product portfolio. The company aims to expand its know-how in the specific vertical field, its geographical location, its portfolio of services, its customer base and its management skills through acquisitions.
Remarkably, its service capabilities such as digital strategy and design, as well as test consulting and automation have been enhanced with acquisitions. In April 2021, EPAM Systems acquired PolSource – one of Salesforce’s leading independent consulting services providers in the Americas and Europe. This acquisition is expected to enhance the application programming interface (API) and microservices capabilities of EPAM Systems, thereby strengthening its technology consulting practices.
With the acquisition of Ricston in September 2020, the company strengthened its growing portfolio of consulting and engineering services in API, micro-service management and integration services. In March 2020, EPAM Systems acquired Deltix, which provides software and services for quantitative research in the financial industry. This acquisition enhanced the capabilities and offerings of EPAM Systems in the FinTech space.
It is important to note that the market share and revenues of EPAM Systems necessarily depend on customer relationships and the number of contracts it obtains. This, along with the limited possibilities for product differentiation, make renegotiation of large contracts extremely important. As a result, competition from companies like Accenture (ACN – Free report), Cognizant Technology Solutions Corporation (CTSH – Free report) and Infosys (INFY – Free Report) is constant pressure.
Competition is particularly fierce in the case of resurgent regions like Europe, as all the major players are fighting for business. This naturally increases the pressure on prices. In this context, important integrations help EPAM Systems to remain highly competitive in a rapidly evolving technology and service industry.
In addition, EPAM Systems has a strong balance sheet with sufficient liquidity position and meager debt obligations. Cash and cash equivalents stood at $ 1.37 billion at the end of the first quarter of 2021. It is noted that the company has been able to steadily increase its balance of cash and cash equivalents. and cash flow from operations. The growing trend in liquidity and cash flow shows that the company is investing in the right direction. In addition, given that it only carries $ 25 million in long-term debt, excess liquidity is available for pursuing strategic acquisitions and investing in growth initiatives.
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