Accenture Signs $10m Deal to Acquire 51% GPIT shares

IT firm Accenture reached an agreement with Grameenphone's GPIT to acquire a 51% stake of the latter at US$10m. According to sources, the agreement was signed in the city on Monday at GP House.

During a press briefing on July 3, GPIT's Chief Executive Officer Raihan Shamsi described the deal as a representation of the next era of the firm: "The agreement with Accenture represents the next era for GPIT and was made possible by Telenor's long working relationship with the company." He said: "The entire GPIT team is truly excited to work with Accenture to deliver world class services to our customers." "Transaction is subject to regulatory and other conditions customary in a transaction of this nature, it could be completed by the end August 2013," said Gary Morgenstern, Director of CMT Media & Analyst Relations of Accenture, in an email reply.

A Grameenphone board member said they had decided to sell majority shares of GPIT at "a very poor price of $10m because of the current bad situation of the firm." "$10m is a very low price for a profitable company like GPIT. But in the recent time GPIT was not in a good position," he told the Dhaka Tribune, although the firm made a profit of Tk226.38m in 2012 and Tk140.73m in 2011.

GPIT was registered on January 28, 2010 and launched on April 1 of the same year as a fully-owned IT subsidiary of the country's leading mobile operator Grameenphone. After signing the deal, Bob Sell, Group Chief Executive of Accenture Communications, Media and Technology, said: "Our strategic investment in GPIT allows us to tap into a very robust pool of skills and capabilities in the country." He said they are excited to be investing in the largest IT service company in Bangladesh, with a client base including the country's largest telecom operator.

"GPIT provides a great foundation to serve Grameenphone, Telenor, and through our investment, other companies in the country." Sigve Brekke, Chairman of Grameenphone, said: "As part of GPIT's growth strategy, Grameenphone and Telenor have been looking for a strategic partner to enhance its capabilities." He said the mobile operator has a strong commitment to strengthening the IT sector in Bangladesh and in this regard, the Board of Directors of Grameenphone believes it has found an ideal partner to support GPIT.

Earlier, Grameephone made the decision of selling the majority of GPIT shares at the 135th board meeting held on June 26. In order to have the decision approved, the board has called an extra ordinary general meeting on August 1. GPIT has been awarded two certificates by the International Organization for Standardization; ISO 20000 for IT Service Management and ISO 27001 for Information Security Management System.

Accenture business has expanded to more than 120 countries and more than 200 cities, serving approximately 261,000 people. The company generated net revenues of $27.9bn for the fiscal year which ended on August 31, 2012. In India, Accenture has nine stations in Hyderabad, Bangalore, Chennai, Gurgaon, Kolkata, Mumbai, New Delhi, Noida and Pune.

First published in Global Services