AKKA Closes Acquisition of PDS Tech in the United States.
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16 November 2018 - European mobility sector engineering consulting and R and D services company AKKA (PAR: AKA) has finalised the acquisition of US-based PDS Tech Inc, the company said.
PDS Tech offers talent acquisition solutions in the aerospace, defense, machinery, communications, energy, technology and service industries.
This acquisition is part of AKKA's CLEAR 2022 strategic plan and aims to create a leading engineering and technology services consultancy in the US.
To support the strong demand from North American clients of PDS Tech and to take advantage of synergies with AKKA's existing customers, AKKA has been actively structuring its North America Business Unit for continued success.
Consequently, AKKA has appointed Cash Nickerson as chairman of the Business Unit and has assembled a highly experienced advisory board, combining both technical expertise and first-rate business connections to accelerate AKKA's development in North America.
As a long-time shareholder of PDS Tech, Cash Nickerson has served as the company's president and chief financial officer for fifteen years. He has worked in a variety of high-tech industries for over 30 years and will bring his extensive knowledge of the North American aerospace market and his network of top tier clients to the AKKA Group.
Cash Nickerson will also join AKKA's Group Executive Committee. Benjamin Ricci, who recently set up the AKKADEMY, AKKA's in-house training and innovation hub, will work alongside him.
The operational management will be led by one of AKKA's long-time managers from the Aerospace Sector.
The US market for R and D consulting and engineering is valued at USD295 bn2 and is expected to double over the next several years. An important development and market signal among large industrial players TODAY is the increasing concentration of outsourced engineering services in their supply chains.
With the acquisition of PDS Tech, AKKA said it is positioned to benefit from the strong growth in the United States for outsourced R and D services. AKKA aims to be at the forefront of this trend and support its global clients operating in North America.
AKKA is positioned as a supplier to the US aerospace industry.
Revenue of USD 300m is expected for the fiscal year 2018, organic growth of more than 15%;
AKKA North America will continue to operate with the PDS Tech brand, teams, and business model for staffing activities, while benefiting from numerous synergies with the AKKA Group.
PDS Tech will accelerate its established business in the US for both AKKA's as well as its own long-standing clients.
In parallel, AKKA will deploy its structured offerings in the North American market to support the evolution in demand of major clients towards technology and innovation consulting services.
PDS Tech is well-positioned to quickly capture growth in the industry. PDS Tech's revenue is expected to grow by 15% to USD300M in 2018, compared to USD260M in 2017, with a 2018 operating margin up by 100 basis points.
AKKA supports industry players in the automotive, aerospace, rail and life-sciences sectors throughout the life cycle of their products with cutting edge digital technologies (AI, ADAS, IoT, Big Data, robotics, embedded computing, machine learning, etc.).
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|Publication:||M2 EquityBites (EQB)|
|Date:||Nov 16, 2018|
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