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Symphony Ventures acquisition: Deal underscores RPA expansion

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Sykes Enterprises’ pending acquisition of Symphony Ventures, a robotic method automation consulting company, underscores…

the expansion of the RPA current market and could spark further offers.

Sykes, a small business process outsourcing company based mostly in Tampa, Fla., operates contact facilities and get in touch with centers for clients across a range of industries.

The Symphony Ventures acquisition, predicted to near by Nov. 1, will provide Sykes with consulting, implementation and managed services sources in the intelligent automation room.

In addition, Symphony Ventures contributes robotic course of action automation (RPA) software package partnerships with sellers these kinds of as Blue Prism and UiPath.

Ian Barkin, co-founder and chief technique officer at Symphony Ventures, primarily based in London, claimed the transaction matches Sykes’ broader eyesight of producing an clever consumer experience to better provide its clients’ buyers.

Ian Barkin, co-founder and chief strategy officer at Symphony VenturesIan Barkin

“They knew that intelligent automation was likely to be a quite strategic component of their in general giving and eyesight,” Barkin explained.

Barkin explained Sykes experienced been accomplishing get the job done in RPA, but acknowledged the need to have to dietary supplement the company’s expertise and mail “a sturdy signal to their current customers in the industry that they were serious about concentrating on this.”

Symphony Ventures acquisition: Terms of the deal

Sykes said it has agreed to invest in Symphony Ventures for about 52 million euros, or $69 million based mostly on an exchange fee of 1 euro to $1.32. The purchase cost is about two moments the consulting firm’s projected 2019 revenue, according to Sykes.

“The Symphony acquisition is certainly a sign that the RPA sector continues to warmth up,” mentioned Ron Schmelzer, controlling husband or wife and principal analyst at Cognilytica, a market place analysis agency in Washington, D.C., specializing in AI, machine learning training and cognitive technologies.

Ron Schmelzer, managing partner and principal analyst at CognilyticaRon Schmelzer

Schmelzer reported Symphony Ventures’ profits value and revenue record sheds light on the growth of the RPA market. Symphony Ventures generated about $1.3 million in its to start with 14 months of functions — a time period ended Dec. 31, 2015. The prime line climbed to about $5 million in 2016 and eclipsed the $10 million mark in 2017, in accordance to financial statements filed with United Kingdom federal government. The revenue a number of Sykes strategies to pay indicates Symphony Ventures expected about $35 million in 2019.

“That is a big jump from 2017,” Schmelzer stated.

Pure-engage in expenditure

Barkin stated the Symphony Ventures acquisition is also noteworthy as an investment decision in a pure-enjoy RPA provider provider. He claimed most investments in RPA have been in application, with the exception of offers these types of as Accenture’s 2017 acquire of Genfour, an clever automation service provider based mostly in the United Kingdom.

Barkin explained Symphony Ventures, at some 200 employees, is the most significant of the pure-play RPA services firms, noting that many others are much less than 50 % that sizing.

At that amount of work, “there’s no rationale to doubt that they have constructed the largest consultancy focused as a pure participate in on RPA and [intelligent automation], Schmelzer explained.

The Symphony acquisition is certainly a indicator that the RPA marketplace carries on to heat up.
Ron Schmelzertaking care of companion and principal analyst at Cognilytica

Schmelzer explained Symphony Ventures’ expert services opponents may have extra complete workers, but noted all those businesses typically offer you RPA as a division of their organizations, as opposed to RPA as the sole concentrate. He explained it is difficult to tell irrespective of whether RPA divisions inside of service providers like Capgemini, Deloitte, PwC, Infosys, Mphasis and Wipro are greater than Symphony Ventures.

That explained, the Symphony Ventures acquisition could prompt this kind of providers to invest in RPA assistance companies.

“This acquisition could absolutely warmth up the sector, and firms like qBotica may possibly be more appealing to some of the larger companies that are seeking to make out their divisions,” Schmelzer claimed.

Centered in Phoenix, qBotica is an RPA and AI solutions corporation.

RPA market chart
The RPA market is going toward scale-up deployments.

Evergreen Providers Team: Integritek buys Acutech

In other acquisition information, Integritek, an Evergreen Products and services Group platform firm, has acquired Acutech Network Solutions Inc., a managed service company (MSP) in Orange, Calif.

Evergreen, a keeping company pursing MSP acquisitions, invested in Integritek, dependent in Austin, Texas, in August 2018. That deal introduced the investor’s MSP earnings to a lot more than $40 million. Evergreen’s tactic, for the vast majority of its MSP transactions, is to fork out in funds upfront, alternatively than framework promotions all over gain-outs or vendor notes.

Integritek’s Acutech invest in is the company’s 1st acquisition considering the fact that the Integritek financial investment and its fifth acquire in just the last 12 months. Integritek is one of five platform organizations in Evergreen’s portfolio. The other individuals are Executech, an MSP in South Jordan, Utah Wolf Consulting and Jenlor, MSPs in…