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German consulting (and analyst) firm Experton (web, @expertongroup in German, seems they stopped tweeting in English back in 2013 @twitter.com/experton), founded by ex-Meta Group employees (including Andreas Zilch), falls to American ISG (web, @ISG_News).
With BARC and Berlecon in the CXP Group stable (including PAC), the German IT analysis market is now largely foreign owned with the exception of TechConsult (@techconsult_de,owned by media group Heise)
ISG also bought Saugatuck (web, @ISG_Insights), showing they believe scale is key in the research subscription business model.
Consulting firms naturally are hungry for capabilities in market research data as the foundation of a strong consulting portfolio. Either cooperation or acquisition can bridge the gap. ISG has been on shopping tour not for the first time. The Group has taken in firms like for example TPI – IT sourcing advisors, Compass, IT benchmarking and STA Consulting, IT consulting for the public sector in North America. In 2012, ISG united these under the roof of ISG One.
With the Experton group the global ISG will gain additional channels to the German speaking market, a neat market with lots of business activities and buying power. The vendor benchmark formats will add attractiveness to ISGs market advisory services. The ability to share local insights and advise can be a very strong value-add in the global analyst market where local footprint is not always a natural thing.
Experton will benefit from a strong brand, and from the methodology expertise of the ISG group. I would expect that the vendor benchmark formats will see a refresh. These are likely to become great offerings of ISG, attractive for the German speaking countries.
(Developing story)
See the press release below and on ISG’s website as well as a blog post by Anubhav Saxena (LinkedIn, @the_futureist but protected for some reason).
Thanks to Simon Jones (@MrNesjo, LinkedIn) and Ludovic Leforestier (@lludovic and @BearingPoint_AR, LinkedIn) for their input.
Related posts:
- IIAR Sourcing Advisory Chapter starts off with ISG webinar
- CXP Group – A European analyst powerhouse in formation?
Information Services Group Acquires Experton Group AG
Subscription-based advisory and research firm brings new advisor capabilities to ISG, expands firm’s emerging technology research offerings
STAMFORD, Conn., March 9, 2016 – Information Services Group, Inc. (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today announced the acquisition of Experton Group AG, a subscription-based research, advisory and benchmarking firm based in Munich, Germany.
Experton Group and its team of independent advisors provide continuous research and advisory services focused on digital transformation, offering high-value content in the areas of mobile, cloud, security, big data analytics, social business, sourcing, Industry 4.0, IoT, SaaS platforms and infrastructure. The firm also offers data and analysis based on primary and secondary research, and Vendor Benchmarking services that evaluate service providers and technology vendors based on best-in-class cost, price, process and value benchmarks.
The acquisition accelerates the development of ISG’s subscription research business in the DACH (Germany, Austria, Switzerland) region – the firm’s second-largest market after the Americas; adds immediate, trusted vendor benchmarking and advisor capabilities, and provides a solid foundation for future expansion. Importantly, Experton Group highly complements ISG’s 2015 acquisition of Saugatuck Technology, which provides research and analysis on the future of business computing under the newly launched ISG Insights™ brand.
“Our acquisition of Experton Group, along with last year’s acquisition of Saugatuck Technology, demonstrates our firm commitment to offer clients deep analytical, research and forecasting capabilities, which, when coupled with our industry-leading consulting services and market intelligence, allow them to plan for their digital future and stay ahead of the competitive curve,” said Michael P. Connors, chairman and CEO of ISG.
Connors said the acquisition of Experton Group is part of the firm’s strategy to increase its recurring-revenue base, which currently represents 28 percent of the firm’s revenue. “Experton’s subscription revenue model, like that of Saugatuck Technology, further expands our growing and more predictable recurring revenue streams, which are targeted to reach 35 percent of firm revenue over the next few years.”
“We are delighted to be joining ISG,” said Juergen Brettel, co-founder and CEO of Experton Group. “The service offerings of both firms are highly complementary, and our research focus aligns perfectly with ISG’s growing Digital Services. In addition, our Vendor Benchmarking Services add a new capability to ISG that can be leveraged globally. We look forward to combining the data, expertise and analysis of both firms to extend our growth opportunities not only in the DACH region, but worldwide.”
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About Experton Group
Experton Group is a leading fully integrated research, advisory and consulting company, helping mid-sized and large organizations maximize the business value of their ICT investments. Its team of independent advisors offers innovative and authoritative research and advice focused on digital transformation, including mobile, cloud, security, big data analytics, social business, sourcing, Industry 4.0, IoT, SaaS platforms and infrastructure. Experton Group also offers vendor benchmarking services that evaluate service providers and technology vendors based on best-in-class cost, price, process and value benchmarks. Experton Group was founded in 2005, and has offices in Munich and Kassel, Germany. For more information, visit www.experton-group.com.
About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience and global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 1,000 employees and operates in 21 countries.
