FPT has just completed an investment in Cardinal Peak, a technology services provider in North America, and is the third M&A deal in just one year.
Through this deal, FPT expects Cardinal Peak to help double revenue from product engineering services (consulting, design, development, and testing of new technologies including hardware and software) in the US market in the next two years.
With Cardinal Peak's joining, FPT said it will be supplemented with a workforce of hundreds of engineers who are knowledgeable about technologies such as IoT, cloud computing and mobile, as well as understand the unique needs of customers in each field.
Cardinal Peak is a company with more than 20 years of history, providing technology services including hardware, embedded software, IoT, cloud computing and mobile product development to more than 300 companies. After this deal, Cardinal Peak will maintain its brand and operating model, and will cooperate with FPT to expand its service scope and customer base globally.
Mr. Nguyen Van Khoa, CEO of FPT Corporation, expects this deal to help both sides create new, high-class products on a global scale. "This will be a great asset for FPT. The deal will help diversify its competitive capacity, creating a difference for the company in its strategy of expanding its presence globally," said Dang Tran Phuong, Deputy General Director of FPT Software.
FPT and Cardinal Peak leaders at the strategic investment signing ceremony. Photo: FPT
Since 2014, FPT has continuously carried out mergers and acquisitions with the world's leading technology enterprises. This strategy aims to complete the service pieces in the technology sector, improve in-depth consulting capacity, expand the customer base in many major fields and increase revenue in foreign markets.
FPT's first M&A deal was the acquisition of RWE IT Slovakia (a subsidiary of RWE) to expand its customer base in public infrastructure. In 2018, FPT acquired 90% of Intellinet, a digital transformation consulting company in the US. In 2022, FPT made a strategic investment in LTS - one of the top 20 consulting, business management and digital transformation companies in Japan.
This year, the group continued to expand its presence in the US by acquiring the technology services division of Intertec International. In October, FPT became a strategic investor in Landing AI, a startup company specializing in computer vision and AI software.
America is also one of FPT's largest markets abroad, with a system of 14 offices in the US, Canada, Colombia, Costa Rica and Mexico.
Mergers and acquisitions play an important role in FPT’s global strategy and contribute to the achievement of the goal of achieving $1 billion in revenue from IT services for foreign markets. In the first 9 months of the year, revenue from this segment brought FPT more than VND17,600 billion, up 31%. Pre-tax profit reached VND2,878 billion, up 30.2% over the same period last year. Newly signed revenue reached VND20,700 billion, up 23%, with 20 projects with a scale of over $5 million.
Minh Son
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