Software engineering solutions and information technology services company EPAM Systems, Inc.EPAM strengthened its delivery capabilities in North America and India with the acquisition of Alliance Global Services, a software product development services and test automation solutions firm.
The deal expands EPAM's Global Delivery Platform and deepens its capabilities in software engineering productivity and automation services.
Alliance Global Services is headquartered in Conshohocken, PA and provides software design, development and quality management services. The firm serves customers in the Life Science and Healthcare, Information and Media, Insurance, and Software and High Tech verticals.
The acquisition fortifies EPAM's East Coast foothold, offers another North American location in Chicago, IL, and also establishes strong delivery capabilities in Pune and Hyderabad, India.
The scale and complexity of the solutions required by global clients today require providers to maintain service quality consistently, regardless of geographic locations and different time zones. This demand is what makes the Alliance Global acquisition such a strategic fit for EPAM. The two companies share comparable key verticals, and have a strong product and solution-based mindset.
The deal will thus enable them to address global challenges more effectively and consolidate EPAM's leading position in the Product Development Services space.
EPAM also issued a revised guidance for full-year 2015, incorporating the effect of this acquisition. The company now expects to report GAAP revenue of at least $905 million for 2015. Non-GAAP diluted EPS for the full year is expected to be at least $2.66, while GAAP diluted EPS is expected to come in at a minimum of $1.56.
EPAM provides complex software engineering solutions and information technology services to clients around the globe. Its clients are primarily Fortune Global 2000 companies in a variety of industries, but its core focus revolves around Independent Software Vendors and technology (which accounts for 22% of total revenue), financial services (28%), business information and media (13%), and travel and hospitality (22%) firms.
EPAM Systems currently has a Zacks Rank #3 (Hold). Other IT services companies that look promising and are worth a look include Acxiom Corporation ACXM , CDW Corporation CDW and Computer Task Group Inc. CTG , each sporting a Zacks Rank #2 (Buy).