BCG acquires procurement and operations consultancy Inverto

28 September 2016

The Boston Consulting Group has acquired Germany-based Inverto, a move which further diversifies its range of services for clients in the procurement and operations segment. The addition sees more than 130 management consultants bolster BCG’s capabilities and capacity in a fast growing consulting segment, as digitalisation and Internet 4.0 developments come online.

Inverto was founded in Cologne, Germany, in 2000*. The firm provides supply chain optimisation and procurement services to companies across Europe, including multinational corporations, small and medium-sized enterprises (SMEs), as well as large private-equity firms.

Over the past fifteen years the consultancy has enjoyed steady growth, expanding its footprint with offices in Germany, Austria, the UK, and China. Today Inverto employs more than 130 staff and delivers a range of services, from identification, evaluation, and implementation of procurement savings to improvement in strategy and processes and organisational transformation.

In a bid to further bolster its capacity in the area of procurement and operations, The Boston Consulting Group (BCG) has fully acquired Inverto. The deal sees Inverto become an independent entity within BCG, with the firm's three managing partners set to continue to lead the firm’s day-to-day operations.

BCG acquires procurement and operations consultancy Inverto

The deal significantly grows BCG's headcount in Germany, where the consultancy has seven offices**. With the move, BCG aims to tap into the fast growing market for digitalisation in procurement, Industrial 4.0 and technology integration in the wider operations chain of organisations, with consultants often called in to solve critical issues. According to a recent study conducted by BCG's German unit, Industry 4.0 could realise productivity gains of between 5% and 8% in manufacturing, down the line leading to an increase of 1% to Germany's GDP. A wider research, by Strategy&, found that Industry 4.0 will add a forecasted $493 billion in revenue gains per annum over a five year period to European industrials sectors.

Carsten Kratz, Senior Partner at BCG and head of the German management team, says, "We are very pleased to welcome Inverto to BCG. With their proven technical expertise, and a business model that would appeal to our clients, the team at Inverto is a good fit for BCG.”

Kiran Mazumdar, Managing Partner of Inverto, adds, "BCG is an ideal partner for Inverto, particularly at this point in time. The merger opens up great new opportunities for both the firm and all our staff. This partnership presents us with an ideal solution that will enable us to tap into the global market’s dynamic growth potential, while simultaneously adding our capabilities to BCG's already extensive range of services.”

Kratz continues, "Modern management consulting requires the synergy and cooperation of the brightest minds, as well as the best methods, tools, and data analyses. This also applies to all areas of expertise that we are involved in – including segments in operations such as procurement and supply chain management. In all these aspects, Inverto is a meaningful addition to our capabilities."

BCG's M&A track

Earlier this year BCG acquired a stake in matchmaking platform Opportunity Network, while last year it bought TSG Consulting (Australia) and BrightHouse (US). In 2014 digital consulting firm S&C was picked up. Commenting on the firm's M&A strategy, Krazt says: "We will continue driving our business forward by building on our own growth, as well as through specific complementary acquisition."

* The founders of Inverto are Markus Bergauer, Kiran Mazumdar and Frank Wierlemann.

** BCG's German offices are based in Düsseldorf, Berlin, Cologne, Stuttgart, Hamburg, Munich and Frankfurt.