Debis IT Services North America Inc, the Illinois-based subsidiary of debis Systemhaus GmbH, has bought Illinois, US-based desktop outsourcing consultants Technology Asset Management (TAM) for an undisclosed amount. The move marks the first US acquisition by Germany’s largest IT services company since the merger of its parent company, Daimler-Benz, with US car maker Chrysler to form DaimlerChrysler overcame US restrictions from which debis Systemhaus had previously been victim.
Two-year old TAM currently has 32 employees and expects to see revenues of about $5m for fiscal 1999. But despite its small size, the TAM acquisition may prove significant in the longer term. CEO Rick Wargo, said debis IT Services North America was attracted to TAM after the US company’s expertise in desktop asset management solutions helped it pick up business from 22 Fortune 500 clients in its short life. As well as boosting debis’ US presence, the German company said it was also keen to export TAM’s desktop expertise to its domestic market. Wargo says the acquisition is likely to be the first of several for debis Systemhaus in the US.
Desktop services made up 36% of debis Systemhaus’ outsourcing revenue in 1998, growing 93%, to DM1.1bn ($580m). European growth has already been strengthened by the December 1998 acquisition of French-based Groupe Spring which also has operations in Switzerland, Austria, Italy, Germany and the Czech Republic. Debis Systemhaus’ Eastern European desktop service operation was also boosted by the November 1998 creation of a joint venture, debis Oasa IT Services, with Czech Republic-based Oasa Computers.
The company has been on the lookout for further European acquisitions in an attempt to expand desktop services revenue to around DM1.7bn ($900m) in 1999, but the acquisition of TAM represents its first attempt to grow these services in the US. Debis Systemhaus’ US opportunities are also opening up through Chrysler’s US activities.
