Sample Intelligence Brief
- Government outsourcer EGL has been acquired by SAIC in a 6.5 billion dollar deal.
- TCS reported 50% quarter over quarter growth and Infosys reported 30% quarter over quarter growth due to increasing contract sizes and scope.
- DXC, which was created by the merger of HP enterprise and CSC has purchased Luxoft, justifying the deal by saying it brings new revenue streams.
- In major regional news, Scotiabank, which has ramped up its investment in Latin America and the Caribbean in recent years, backtracked by announcing it will exit nine Caribbean countries due to the high costs of regulatory compliance compared to the relatively low market potential in these areas. It has arranged to sell this business for $123 million to Republic Financial Holdings in Port of Spain. The nine nations are: Anguilla, Antigua, Dominica, Grenada, Guyana, St. Kitts and Nevis, St. Lucia, St. Maarten, and St. Vincent and the Grenadines. “Due to increasing regulatory complexity and the need for continued investment in technology to support our regulatory requirements, we made the decision to focus the bank’s efforts on those markets with significant scale in which we can make the greatest difference for our customers,” said Ignacio Deschamps of Scotiabank.
- While Scotiabank’s banking operations in Trinidad and Tobago are unaffected, in a separate deal, the Toronto-based company, through its local subsidiaries, is spinning off its insurance operations in both Trinidad and Jamaica to Sagicor Financial Corporation. “As part of this strategy, Scotiabank’s subsidiaries in Jamaica and Trinidad & Tobago announced that they will enter into a 20-year distribution agreement with Sagicor through which an enhanced suite of market-leading insurance products and solutions, underwritten by Sagicor, will be offered to Scotiabank customers in Jamaica and Trinidad and Tobago,” said Scotiabank in a statement. (Contact: Phil Smith, investor relations at Scotiabank, 416.863.2866, [email protected])
- In response to financial sector regulatory requirements that have “exploded” in recent years, the European Banking Federation (EBF) has called on EU financial sector authorities to “create an integrated and standardized framework for data reporting to improve the quality of data while reducing the reporting burden,” reports Banking Technology. Effectively, the industry wants to move toward a landscape where it can report its key data and information one time and then have that information shared between relevant watch dogs rather than being required to report and report and report again and again to an alphabet soup of different agencies.
- Beleaguered Wells Fargo is laying off around 1,000 workers in its consumer lending, payments, virtual solutions, and innovations groups. “Most of those affected received 60-day notices, but some received pre-notices, meaning they will get a 60-day notice sometime next year,” per Reuters.
- The previously announced $1 billion acquisition of Denver-based bank CoBiz Financial by BOK Financial Corporation of Oklahoma is resulting in a branch closure and 27 layoffs out of around 538 people employed by CoBiz, per the Phoenix Business Journal. And because BOK already owns Colorado State Bank and Trust, it will combine the local operations of those two institutions in Colorado to increase its market share under one banner and leverage the efficiency gains of integrating systems that it has already invested in. (Contact: Katy Hall of CoBiz, 918.588.6502)
- Grand Bank of Texas, with offices in Dallas and three other locations in the state, has signed a merger agreement with BancorpSouth Bank, which has nearly 300 locations across the southern United States and Texas. (Contact: John Copeland, chief financial officer of BancorpSouth, 662.680.2536)
- Paychex has agreed to pay $1.2 billion to acquire Oasis Outsourcing, the country’s largest privately owned professional employer organization. “The acquisition meaningfully expands Paychex’s breadth in the attractive PEO market, which has been an area of strong recent performance for the company,” said Wells Fargo in a note to investors. Based in West Palm Beach, Florida, Oasis has around 1,100 employees. “The two companies will operate separately until the deal is finalized,” stated Paychex. (Contact: Laura Saxby Lynch, director of corporate communications, 585.383.3074, [email protected])
- Accenture acquired a controlling interest in SEC Servizi Spa, a provider of technology services and software applications to financial institutions, from Intesa Sanpaolo Group. The banking group sold its 80.8% holding in the firm to Accenture, which said it “will also acquire the remaining interests in SEC Servizi Spa held by other shareholders.” (Contact: Peter Y. Soh, digital lead at Accenture, 703.947.2571, [email protected])
- Capgemini launched a “Security Operations Center” within its growing “Advanced Technology and Development Center” in Columbia, South Carolina. According to the company, the center “further strengthens” the location’s ability to “help clients drive business differentiation, innovation, transformation, and operational efficiency across their organizations while protecting data, assets, identities, and overall customer trust.” (Contact: Florence Lièvre, communications at Capgemini, +33 (0)1 47 54 50 71, [email protected])
- Wipro’s recently acquired cloud company, Appirio, has opened a new office in Porto, Portugal, to “expand its European operations and meet growing business requirements in the region,” per Wipro. “The new office will hire local talent both laterally and from universities, for delivery roles such as functional consultants, technical leads, and integration architects.” (Contact: Prathibha Das of Wipro Limited, [email protected])