To be the European pioneer in integrating and financing digital solutions: Econocom's ambition as defined in its 2013-2017 Strategic Plan, called "Mutation".
The plan should enable Econocom to double in size in five years whilst consolidating profitability.
Econocom: at the heart of the digital world
With its original positioning combining technological and financial innovation, Econocom plans to ensure rapid digital adoption for its customers so that they may benefit from the technology for their business strategies.
In order to achieve this objective, Econocom is establishing itself as a service company specialising in integrating digital solutions and offering innovative financial services. To that end, the group is enhancing its digital services expertise, in particular in networks, security, cloud and application integration, via both organic development and further targeted external growth transactions.
Meanwhile, Econocom is also structuring and consolidating its innovation capabilities, particularly in the smart objects(1) field. The aim is to use the group’s expertise to advise and guide clients in their choice in light of the proliferation of new digital assets and design and implement new solutions for their businesses.
Digital as a service
To help companies rapidly integrate digital solutions into their business strategies, Econocom is designing vertical solutions to address its clients’ business concerns, particularly in the Healthcare, Retail, Education and Industry sectors. A dedicated sales strategy will gradually be implemented to promote these solutions.
With its expertise in distribution, ICT services and financing technology infrastructures for an all-inclusive fee, Econocom aims to become a partner of choice for businesses, offering them business solutions charged “as a Service”.
Main target: European mighty middle multinationals(2)
Econocom tailors its approach and offerings to the size of its clients, ranging from SMEs to enterprise accounts, and aims to become the partner of choice for Mighty Middle Multinationals.
Expanding its International presence
Econocom will be implementing an international expansion strategy, which will vary according to the degree of maturity of each geographical area.
To that end, four strategic areas have been identified:
- France and Benelux: the group’s main contributors and change drivers
- Southern Europe: deploy a multi-activity business model
- Northern and Eastern Europe: targeted business approach
- The Americas: new horizons.
A new cycle of strong mixed, profitable growth
The strategic plan includes some ambitious financial targets which will enable Econocom to enter into a new cycle of profitable mixed growth whilst safeguarding its shareholders’ interests and maintaining a healthy financial structure.
The group therefore aims, by 2017, to double its annual revenue to €3 billion. This strong growth, driven by all the group’s business lines, must be achieved whilst maintaining strong operating margin accounting for 5% of revenue.
Acquisition of Osiatis: one of the first major steps
The acquisition project for Osiatis, a major infrastructure service provider in France (€309 million revenue in 2012 and 4,600 employees), which was announced last Friday, is perfectly in line with the dynamic of the strategic plan. This transaction would allow Econocom to establish itself as a key partner for designing and integrating business’ digital solutions and would ideally position the group to benefit from the digital boom. The acquisition would be financed by a mixed public offer, and facilitated by the substantial cash generated by both groups and their healthy balance sheets. Thanks to the synergies expected from the alliance, worth around €20 million, the transaction should be accretive as of 2014.
Jean-Louis Bouchard, Chairman of Econocom, says: “I am proud of this new strategic plan and excited about embarking on this new adventure along with all the group’s employees. The rapid emergence of today’s new digital world means Econocom has to do more than just adapt: we need to mutate. The success of this plan will rely on the dedication of the men and women who work for Econocom, as it is through their commitment that the Group will mutate. We want Econocom to be pioneers, to be innovative and rise to the fascinating challenges of the digital world. To be a strong, sustainable group that will lead its clients on to new horizons.”
(1) Smart objects: connected objects that can be identified and can collect and process data.
(2) Mighty Middle Multinational: European-headquartered medium-size company with international operations