NTT Data strengthens its position in the SAP channel with the acquisition of mid-market specialist Sapphire.
The deal, terms of which were not disclosed, gives NTT Data a player with a strong relationship not only with SAP, but also with ServiceNow, Infor SunSystems, Amazon Web Services (AWS) and HxGN.
The deal will also support NTT Data’s ambition to strengthen its position among SAP’s mid-market customer base. Sapphire has more than 1,200 existing customers who have been with the company for an average of seven years.
“We are excited to leverage Sapphire’s potential offering to our global customers, particularly its ServiceNow partner capabilities. Sapphire’s expertise, complemented by that of NTT Data Business Solutions, will enable us to comprehensively serve UK and US SMEs market.” said Norbert Rotter, CEO of NTT Data Business Solutions and Executive Vice President of NTT Data.
“In addition, this acquisition will help increase our market share in these two key countries,” he added. “Sapphire has extensive SAP knowledge in development and consulting, particularly in the financial and logistics sectors. By working together, we can support our customers more effectively throughout their entire lifecycle.”
From a UK perspective, this collaboration will put NTT Data in a stronger position to become the SAP specialist in the SME market.
“Looking at Sapphire’s two decades of business development, it’s clear that Sapphire is well-respected by customers and suppliers in the market,” said Justin Brading, executive vice president for Western Europe and managing director UK and Ireland at NTT Data Business Solutions.
“Sapphire’s broad capabilities in the SAP mid-market are an important complement to NTT Data Business Solutions, and our shared commitment to driving digital transformation through cloud adoption makes us the only company that can comprehensively and consistently provide enterprise and mid-market customers with Services that SAP partners “need,” he added.
The U.S. team looks forward to leveraging the market knowledge of Sapphire CEO Vince De Luca.
From Sapphire’s perspective, De Luca said the deal will provide growth opportunities and strengthen its international position.
“My entire leadership team and I are energized by the prospect of becoming part of NTT Data Business Solutions and the role we hope to play in delivering digital transformation outcomes to our clients,” he said.
“The investment potential and global reach of the new leadership will allow us to expand internationally like never before. This is a transformative opportunity for our entire team at Sapphire, who are now the largest digital operation in the world part of one of the providers,” De Luca added.
There has been considerable consolidation in the SAP channel over the past few experiences, and Sapphire itself has contributed to this trend with its acquisition of InCloud Solutions in March 2021.
Other notable deals include Accenture’s acquisition of Edenhouse in 2021 and Codestone’s acquisition of Clarivos in May 2022.
