Wavestone acquires UK's fast growing IT consultancy Xceed Group
International consulting firm Wavestone has acquired Xceed Group, a fast growing technology consultancy with sixty employees across offices in London, Edinburgh and New York.
On Wednesday, Wavestone reported that it was close to bolting-on a major player in the UK, which would significantly bolster its digital proposition. Now, two days down the line, the acquisition has been confirmed by Reza Maghsoudnia, Wavestone’s Director of Strategic Development.
“With this merger, Wavestone not only bolsters its footprint in London and New York, but also enhances its ability to address global programmes. Xceed also enriches Wavestone’s client portfolio with complementary global accounts across the finance services industry.”
Established in London in 2003, Xceed Group is a technology consultancy specialised in implementing large IT transformation programmes for major financial services organisations. Its services revolve around the planning and delivery of complex IT change programmes, and include offerings such as managing digital transformation, modernising banking platforms, enhancing IT infrastructures, IT sourcing and business-IT alignment.
Xceed Group focuses on the financial services industry (accounting for 80% of its revenues), serving banks, insurance companies, asset managers and financial data processors, among others, both in the UK and internationally.
For Wavestone, the deal marks another strategic move in its ambition to realise an ambitious plan for Wavestone 2021, when it aims to become a pan-European consulting firm positioned in the top tier segment of the consulting industry. “This acquisition accelerates our international development,” said Maghsoudnia, “and will play a key role to enrich Wavestone’s value proposition in the UK and the US.”
In the UK, Wavestone launched in 2015 when it acquired Hudson & Yorke, while in the US, the firm launched organically under its former umbrella Solucom, but accelerated significantly when it acquired a large share of Kurt Salmon. A year later the group, which now has 2,600 consultants globally, rebranded as Wavestone.
UK and US offices
As part of the deal, Xceed Group’s 60 employees – of which the vast majority is located in London – will join Wavestone’s offices in the UK capital and New York. The Flexible Infrastructure Managed Services (FIMS) business of Xceed Group has been excluded from the deal, as the unit has been carved-out from the group and retained by the current shareholders of Xceed Group.
The current leadership of Xceed Group – Andy Boyes, Jim Hennigan, Sridhar Vedala, Stuart Riley and Tariq Surty – will remain in their management role, and report to Wavestone’s Managing Partners in the UK and France, where the international consultancy is headquartered.
To ensure a smooth integration into Wavestone, John Casserly, the CEO of Xceed Group, and the other shareholders of the company, will support the merger during a 6 to 12 month transition phase. Commenting on the joining of forces, Casserly said it was a fantastic opportunity for the firm, as Xceed Group will be able to benefit from a larger business force, with a greater international dimension.
“This is really good news for Xceed's clients and staff. The two companies provide complementary services and share a common footprint in the financial services sector. Wavestone have an exciting growth plan and I am very pleased that the team at Wavestone recognises the part that Xceed can play in that plan.”
Earlier this year, Xceed Group celebrated its third consecutive year in the Sunday Times Lloyds SME Export Track 100; a list that ranks UK’s top 100 SME’s with the fastest growing international businesses. Looking ahead, Casserly highlighted that the IT firm has “huge ambitions” to grow as a business. “We are continuing to help our clients to deliver technology enabled business change in more and more locations both in the UK and internationally.”
Wavestone is listed on Euronext Paris. The £13.3 million revenue-base of Xceed Group will be incorporated into Wavestone’s books for the 2018/2019 financial year. Meanwhile in France, Wavestone was recently named the best consulting firm to work for in the country, ahead of the Big Four and other major rivals.
Related: Wavestone leverages unique culture and agility to fuel further growth.
