Computer services giant (IT) Secular Announces another significant acquisition deal: The subsidiary NESS acquires DXC Technology Israel (formerly EDS) for $ 65 million (approximately NIS 205 million). The seller is the Dutch company DXC Hague.
About two months ago, Hilan announced the acquisition of an accountant, who develops and markets software products in the field of ERP, for NIS 210 million. Hilan itself acquired Nissan in 2014 for NIS 145 million. Two years ago, it acquired control of PayDay in the United States for about $ 20 million, and before that it acquired ITway for NIS 59 million.
DXC Israel has about 600 experts, who specialize in the development and implementation of solutions and services for the worlds of information systems in all areas of activity in the Israeli economy, including the industrial, government, security and financial sectors. Upon completion of the transaction, the Company will continue to operate as an internal arm within Ness’s operations. “The merged group will be one of the world’s leading information technology services in Israel, with about 5,000 employees who are involved in hundreds of projects in all sectors of the economy,” the company said in a statement.
Completion of the transaction is expected at the end of the first quarter of 2022, subject to the accepted terms. Ness will acquire 100% of the share capital of the subsidiary for a total of $ 65 million. It deposit 10% of the amount at the time of signing and the rest upon completion of the transaction.
Growth in profits and revenues
Hilan provides IT services in a number of sectors – payroll and human resources services, business solutions, computer infrastructure and software product marketing. The company’s share, which is currently trading at a jump of about 6% on the Tel Aviv Stock Exchange, has recorded a return of about 25% since the beginning of the year. The value of the company is about NIS 4.2 billion.
Its revenues in the third quarter show an improvement of about 4.3% compared to the corresponding quarter last year, with the company noting that the timing of the Tishrei holidays had a slight effect on the increase in revenues. In the first nine months, Hilan’s revenues totaled NIS 1.25 billion, an increase of about 5.5% compared to last year.
Hilan recorded an 8% increase in its net profit in the third quarter, which amounted to NIS 29.5 million. In the first nine months of the year, Hilan’s profit amounted to NIS 100 million, a growth of 8.7% compared to the corresponding period.
The annual revenue turnover of the acquired company DXC was NIS 235.7 million in 2020, a slight decrease compared to revenues of NIS 241.8 million in 2019.
Avi Baum, Chairman of the Hilan Group, said that joining DXC Israel “will be a significant addition to our operations in Israel and will position NESS as the market leader in the world of digital and technological transformation.” The information in Israel and their joining will greatly contribute to the old and new customers of the two companies, in the midst of an era of technological acceleration and digital transformation that is unprecedented and challenging, which we have been experiencing for the past two years. “
Ness Technologies was represented by attorneys Miki Barnea, Yuval Lazi and Meir Winkler from the Barnea firm, Jafa Landa. DXC was represented by attorneys Shira Margalit and Amit Edelman from the Herzog firm.