Vietnamese software firm takes over subsidiary of German RWE

 In Industry News
FPT SoftwareVietnam’s top software firm, FPT, has signed a deal in Berlin to take over a Slovakian IT subsidiary of the European energy conglomerate RWE.
The transaction is FPT’s first overseas acquisition of an information technology firm and may be the first such transaction to have been recorded in Vietnam’s history.
RWE IT Slovakia will continue to provide IT solutions directly to RWE, but on behalf of FPT and under the name FPT Slovakia, according to a release published by the Hanoi-based firm.
FPT said the deal will bring FPT a multi-million dollar, five-year, software contract. Chairman Truong Gia Binh said the acquisition “was a turning point that changed FPT’s status in the European and global market.”

Binh said the deal will better-position the company to provide long-term and comprehensive IT services to energy companies in Europe, and potentially in countries like Japan and the US. He told Bloomberg earlier this year that the company plans to complete two takeovers this year to boost international sales.
Nguyen Thanh Lam

Nguyen Thanh Lam, CEO of FPT Software

RWE IT Slovakia was established in 2004 and currently has more than 400 employees; most are experts in SAP area. As an internal IT Service provider RWE IT Slovakia delivers high quality services to RWE Group mainly in the area of SAP and ‘Smart Home’ solutions.

Under the agreement with FPT, the IT services provided to RWE Group will be delivered jointly from FPT Software Vietnam and FPT Slovakia. Consequently the deal helps RWE Group to save US$ tens of millions in next five years and helps FPT to expand its global delivery capabilities especially in Europe and its expertise area of SAP, Utility domain and “Smart Home” solutions, said FPT Software’s Chief Executive Officer Mr. Nguyen Thanh Lam.

FPT, whose clients include Microsoft Corp. and Panasonic Corp., earned $130 million from overseas markets in 2013 and plans to raise that figure to $340 million by 2016. Its overseas revenues during the first five months this year surged nearly 20 percent year on year to $52 million.

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