July 12, 2018 / 2:17 PM / 3 months ago

Vietnam's FPT buys majority stake in U.S. consulting firm Intellinet

HANOI (Reuters) - Vietnamese technology firm FPT Corp FPT.HM agreed to pay at least $30 million for 90 percent of U.S.-based consulting firm Intellinet Corp, FPT said on Thursday.

The acquisition by FPT, one of Vietnam’s top technology firms, reflects the company’s goal of adding consultancy to its information technology services, alongside its telecommunications, retail and education sectors.

FPT chairman Truong Gia Binh said in a joint statement the acquisition would allow FPT to offer comprehensive services and elevate Vietnam’s position on the global technology map.

Intellinet’s value is estimated at $40-$50 million, said Nguyen The Phuong, FPT’s vice general director. FPT will initially pay $30 million for the stake and then supplement that price depending on the business performance of the consulting unit. FPT declined to give further details.

Unlisted Intellinet has a client base of 200, was founded in 1993, and had revenue of $30 million in 2017, the companies said in a statement.

Both FPT and Intellinet want to take advantage of each others’ existing client base. FPT wants to utilize Intellinet’s existing 150 advisors to expand its businesses and attract more deals.

FPT’s first-quarter net income rose 21 percent from the same time last year to 653 billion dong ($28.3 million), the company’s financial statements showed. Its key markets are Japan, the United States and Europe.

Reporting by Mai Nguyen; Editing by Alexandra Hudson

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