T-Systems acquires SAP specialist ITgen
T-Systems is to purchase ITgen for up to $4.5 million broadening its business offerings in Hungary
T-Systems, the enterprise division of Deutsche Telekom, has acquired ITgen the Hungarian SAP (Systems Applications Products) specialist company.
The news comes as T-systems aims to boost its business offerings in the region and the company hopes to complete the deal before the end of the year.
“The acquisition of ITgen allows T-Systems to provide more comprehensive and therefore more competitive SAP services through acquiring competencies that are highly complementary to its existing portfolio. ITgen possesses unique competencies in SAP technology consulting, SAP GRC and SAP security,” said T-Systems in a statement.
The deal will cost the operator up to €3.85 million ($4.5 million) but the final amount will depend on the financial performance of the business over the next three years.
ITgen reported revenues of €96 million ($114 million) in 2016 and EBITDA (earnings before interest, taxes, depreciation, and amortization) of €2.5 million ($2.9 million).
According to European Communications, Hungary has been one of the best performing operating companies for Deutsche Telekom in Europe.
Total revenues increased by 8.6% to €1.3 billion ($1.5 billion) in the first nine months of the financial year, with EBITDA by 0.7% to €418 million ($497 million). Additionally, its business division is growing at a faster rate than the retail arm with sales up 14.1% to €470 million ($559 million) and 7.1% to €750 million ($892 million) respectively.
Commenting on his appointment, the chairman of Deutsche Telekom’s supervisory board, Ulrich Lehner said: “We are happy to welcome Adel. With his deep knowledge of the industry and his great international experience, he is the right person for the position and its challenging environment.”