EPAM Systems EPAM recently announced the acquisition of Madrid, Spain-based professional digital platform engineering services company, Optiva Media, to enhance its digital solutions across the Europe and Latin America markets. However, the company didn’t disclose the financial terms of the transaction.
Founded in November 2002, Optiva Media provides professional services to television companies that include engineering, product design and development, operations, media and metadata management, research and technical consultancy. The company launched the first video-on-demand system in Europe for ONO in 2008.
Optiva Media introduced its first over-the-top (OTT) streaming platform in Europe in 2011. Its streaming platform is currently being used by several OTT services providers, including HBO, Vodafone, Telefonica and Orange.
EPAM Systems, Inc. Price
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Buyout to Boost Digital Capabilities
The integration of Optiva Media’s platforms and accelerators will help EPAM offer a complete and valuable end-to-end delivery solutions, and services to media and entertainment companies. This, in turn, will enable them to design and develop innovative products, services and deliver better customer experience.
Further, the acquisition is likely to broaden the software engineering and IT consulting service provider’s digital and design portfolio. The combination will enhance EPAM’s capabilities in digital strategy, engineering and creativity, thereby helping it to provide better user experiences.
The buyout is anticipated to strengthen the company’s competitive position in marketing and creative services. Per the latest kbv research report, the global digital transformation market is estimated to reach $1.3 trillion in 2027, witnessing a CAGR of 20.8% during the forecast period (2021-2027). The acquisition of Emakina Group will reinforce EPAM’s position in the growing global digital technology market.
Growth Due to Acquisitions
In recent years, acquisitions have been crucial to EPAM’s growth. Since its debut, EPAM has acquired 25 businesses, which have enabled the company to enter new markets, and diversify and broaden its product portfolio. The company aims to widen its vertical-specific domain know-how, geographic foothold, service portfolio, client base and management skills via acquisitions.
Its service capabilities like digital strategy, design plus consulting and test automation have been enhanced by acquisitions. In November 2021, EPAM bought Belgium-based independent digital marketing agency, Emakina Group, to enhance its digital solutions across the EMEA markets.
In August 2021, it announced the buyout of S4N, a leading Latin American software development services, to expand its global reach in the Latin American region. In July, it took over CORE SE, a professional service provider specializing in IT strategy and technology-driven transformations, to strengthen its position as a consultancy leader in the DACH region.
In May 2021, it bought Netherlands-based Just BI to boost its data and analytics services portfolio, and Israel-based White Hat Ltd. to improve its cybersecurity portfolio. In April 2021, EPAM Systems acquired PolSource, one of the leading independent consulting service providers of Salesforce in America and Europe.
Thus, these back-to-back buyouts are meant to fortify EPAM’s position across multiple sectors.
Zacks Rank & Other Stocks to Consider
Currently, EPAM carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past 30 days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last 30 days.
Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. GOOGL stock has rallied 64.2% year to date (YTD).
The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 60 days. For 2021, earnings estimates have moved upward by 6.3% to $5.06 per share over the past 60 days.
Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 45.9% YTD.
The consensus mark for PTC’s first-quarter fiscal 2022 earnings has been revised upward to $1.00 per share from 90 cents 60 days ago. For fiscal 2022, earnings estimates have been revised upward by 26 cents to $4.19 per share in the last 60 days.
PTC’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have decreased 1.9% YTD.
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Diodes Incorporated (DIOD): Free Stock Analysis Report
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