Ten years ago, Mr. Bui Hoang Tung volunteered to step into the US market and FPT USA (FUSA) was the first 100% Vietnamese IT company in the USA. A decade later, he kicked- off the first M&A of FPT in the world’s most advanced market.
Chief Strategy Officer of FPT- Mr. Bui Hoang Tung shared about this historical M&A.
How did M & A with Intellinet come to you?
The most recent M&A deal that FPT just won was with a German company five years ago. Currently, FPT was the first IT company in Vietnam to purchase an IT company in Europe. In recent years, FPT has been continuously searching many partners in Europe, Japan and the USA to make investment and M&A.
After doing many research, the opportunity came when we met Intellinet. It was very lucky to meet Mr. Frank Bell (Founder and CEO of Intellinet) and participate in a M&A event of 7Miles- Intellinet’s representative.
Intellinet Network Solutions is a leading provider of both active and passive networking products. With revenue of USD 30 million in 2017, Intellinet is rated by Consulting Magazine as one of the fastest growing technology consultants in the United States. Obviously, Intellinet is an attractive partner with technology companies.
When I talk about this opportunity, FPT Software’s leaders have responded positively. Together with Mr. Nguyen Khai Hoan- Financial Director of FPT Software, Mr. Nguyen Lam Phuong- Director of FPT Canada, we took 2 weeks to work and learn about Intellinet, then presented to Exco of FPT and got “green light” to go.
What makes you believe that M&A with Intellinet will bring opportunities to FPT in the US?
Intellinet is an advanced IT consulting services, strong team leaders, dynamic consultant team, impressive number of customers and digital conversion development strategy, etc. Especially, we have found a synergy between the two sides that could bring added value of digital converting services to the largest companies in the US in particular and the world in general.
Can you share with us how could you win the M&A deal with Intellinet?
Intellinet is in the process of finding suitable partners, sharing the vision and strategy to accompany with them in the new growth phase. Among a long list of companies intending to explore, Intellinet selected eight candidates including FPT. FPT actively invited Intellinet executives to work in Vietnam to understand more about the group. Intellinet highly appreciated this visit and felt there is harmony between the two sides.
After more than 7 months and 160 related meetings, FPT successfully negotiated to become a strategic partner owning more than 90% of Intellinet’s shares and being the first Vietnamese IT company to buy a technology consultant in the USA.
Intellinet is just the first start in your journey. Can you share with us the next target audience for M&A?
Intellinet is the beginning of a new phase of FPT Software in general and FUSA in particular to raise the capacity of providing general technology services, especially in digital conversion projects for leading groups in the world.
The next strategic plan for M&A is to reach USD 1 billion, focusing on strategic markets such as Japan, the USA and Germany.