With the acquisition of LogiKal Group, Assystem, the specialist in engineering, digital services, and project management for critical and complex infrastructures, is making a foray into the UK market. Assystem is thus pursuing its strategy of international development through inorganic growth operations. Experts from AURIS Finance, specialists in M&A advisory, decipher this new market move.
“A distinct offering for major infrastructure projects in the United Kingdom and other countries where both companies have operations.” After acquiring LogiKal, the French giant has thus outlined its UK ambitions in a press release. On 28 November, Assystem announced that it had acquired 100% of the capital of the three sister companies that make up the LogiKal Group. Assystem is an international engineering, digital services, and project management company that helps clients deliver large-scale projects. The acquisition of LogiKal, a project management specialist with strong digital capabilities, strengthens Assystem’s offering to the UK market. “Assystem’s ambition is to accelerate the convergence of engineering and project management through digital. By integrating LogiKal into the Assystem group, we are taking another step towards achieving this goal,” said Christian Jeanneau, Senior Vice President of Assystem’s digital activities, at the time of the merger.
Stepping up the energy transition
It should be noted that 65% of LogiKal’s turnover is generated in the UK, a figure that has risen to €17 million by 2021. The group is also present in Australia and Hong Kong. Together, the two companies intend to position themselves on major infrastructure projects in the UK, such as the HS2 high-speed railway line and the Lower Thames Crossing (transport infrastructure). Assystem was founded in 1966 and originally developed in the nuclear sector. Today, Assystem is still involved in major projects of the sector, notably with a digital project management service, and is also active in renewable energy, with wind farm and green hydrogen projects.
Dynamic inorganic growth
With this new acquisition, Assystem is strengthening its international presence. The group, which now employs nearly 6,000 people worldwide, and has a turnover of €500 million, began its acquisition strategy in the early 1990s. In France, between 2017 and 2020, the group has taken over three companies specialising in project management. An acquisition strategy that is supported by capital increase. In 1995, Atem and Alphatem merged to form Assystem, which was then taken public. Today, the company is listed on Euronext Paris (compartment B).
Get the support you need
The engineering market is currently booming, driven in large part by the climate emergency. The energy crisis is encouraging and accelerating the necessary reorientation of companies’ growth models towards a sustainable world. In this context, the need for advice and support is likely to increase over the next few years. However, this will only be possible if companies are equipped with robust expertise and an international dimension. The trend in the engineering sector is therefore towards consolidation. Industry giants are now trying to position themselves on small organisations to acquire their technology and talent. Experts at AURIS Finance are specialised by sector. Our engineering department has been assisting companies with their acquisitions and sales transactions for several decades. Our experts are familiar with the specific problems of the industry and will be able to assist you.
