FTSE 250 digital services provider Kainos (KNOS) has announced the acquisition of Netherlands-based consultancy Planalyse on undisclosed terms.
Planalyse has been a Workday Adaptive Planning partner for over four years, supporting deployments, building and improving forecasting models for customers across Benelux, Spain, and Portugal.
This morning’s acquisition is Kainos’s seventh and likely smallest Workday practice purchase to date, according to Megabuyte analyst James Preece. It will add six consultants to what Preece estimates is now a circa 600-person strong division within Kainos.
For reference, Kainos’ Workday practice reported 31% organic revenue growth to £48.1 million in the first half of this financial year, which ends on 31 March 2022.
GO-TO WORKDAY PARTNER IN EUROPE
Megabuyte’s Preece believes this is another building block in Kainos’s ambition to be the Workday partner of choice in Europe, adding clients across Benelux, Spain and Portugal, as it aims to scale in line with Workday’s lofty growth objectives.
Kainos Workday Practice involves consulting, project management, integration, and Smart Automated Testing, working with around 600 clients including Capital One, Cardinal Health and General Dynamics.
New York listed Workday, is targeting its own expansion to become a $10 billion revenue company over the next three to four years, from circa $4 billion today.
Such a small deal was never likely to move the Kainos share price needle much, with the stock dragged around 1.5% lower on Monday to £14.81 by inflation concerns and the unsettled geopolitical situation between Russia and Ukraine.
The stock had hit a record £20.84 in early November 2021, but like most tech-led growth businesses, the shares have come under heavy selling pressure as investors grapple with soaring inflation and the start of rising interest rate cycle in the UK and US.
