Sopra Steria, a European consulting, digital services and software development company, has announced plans to acquire IT services provider CS Group.
This is technology M&A deal number 685 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
Sopra will acquire CS Group for €282.5 million (approximately $287 million). The deal is expected to be finalized by the end of Q1 in 2023.
Sopra Steria, founded in 1968, is based in Paris, France. The company has 43,858 employees listed on LinkedIn. Sopra Steria's areas of expertise include cybersecurity, data management, cloud, digital transformation and software development.
CS Group, founded in 1968, is based in Paris, France. The company has 1,840 employees listed on LinkedIn. CS Group's areas of expertise include critical applications and systems.
What the Acquisition Means for Both Companies
Together, Sopra Steria and CS Group "create a benchmark player in digital services and engineering," Sopra Steria CEO Cyril Malargé noted. CS Group strengthens Sopra Steria's position in cybersecurity and other verticals and accelerates the company's growth.
CS Group supports Sopra Steria's expansion into the global cybersecurity market, the companies said. It provides Sopra Steria with more than 200 cybersecurity experts and could help the company further extend its market reach.
Furthermore, Sopra Steria expects the CS Group acquisition to boost its earnings per share by 1% in 2023 and 4% in 2024, the company stated. Sopra Steria also anticipates that the acquisition will help the company boost its revenues by more than €13 million (approximately $13.2 million) annually.
Sopra Steria Acquires French Cybersecurity Firm
The CS Group acquisition comes after Sopra Steria in December 2021 purchased EVA Group, a French cybersecurity firm. EVA Group supports Sopra Steria's mission to become "one of the top three players in the French cybersecurity market," the company said.
Sopra Steria provides cybersecurity, infrastructure management and other services to European organizations. It recorded revenues of €2.5 billion (approximately $2.5 billion) in the first six months of 2022 and revenues of €4.7 billion (approximately $4.8 billion) in 2021.
