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EPAM Systems Ups the Game in EdTech Via Competentum Buyout

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EPAM Systems (EPAM - Free Report) has been pursuing acquisitions to tap new markets, diversify and broaden its product portfolio.

Recently, the company acquired an educational content services company, Competentum, and its learning platform, ShareKnowledge, for an undisclosed amount.

Reportedly, the addition of Competentum is expected to extend EPAM’s digital transformation proposition in the media, publishing and EdTech industries.

By integrating Competentum's strong content development expertise with EPAM’s consulting, design and delivery practices, the company believes, it can help “customers create new value models underpinned by better experiences and delivered through new educational technologies and digital learning platforms."

Shares of EPAM have soared 52.9% in the year-to-date period, substantially outperforming the industry’s rally of 27.6%.

 

Acquisitions Drive Growth

EPAM have significantly burgeoned its business base over the past few years, both organically and through strategic acquisitions. Notably, buyouts have been one of the key growth strategies for EPAM.

The company aims to widen its vertical-specific domain know-how, geographic foothold, service portfolio, client base and management skills via acquisitions. Notably, its service capabilities like digital strategy and design plus consulting and test automation have been enhanced with strategic acquisitions.

Moreover, such integrations are also aiding EPAM to stay highly competitive in a rapidly-changing technology and services industry.

Last year, the company acquired Continuum Innovation to bolster its consulting, physical design and product development competence. Moreover, the takeover of Think Limited is projected to upgrade global product and design offerings.

Notably, in fiscal 2018, the acquisition of Continuum and Think Limited contributed 1.8% and 0.1%, respectively to EPAM’s revenue uptick.

Moving ahead, such consolidations are envisioned to substantially favor the company’s revenue stream.

Zacks Rank & Other Stocks to Consider

EPAM currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are Five9 (FIVN - Free Report) , Rosetta Stone and j2 Global , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Five9, Rosetta Stone and j2 Global is currently forecast at 10%, 12.5% and 8%, respectively.

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