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EPAM Systems (EPAM) Acquires Emakina, Boosts Digital Portfolio

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EPAM Systems (EPAM - Free Report) recently announced the buyout of Belgium-based independent digital marketing agency, Emakina Group, to enhance its digital solutions across the Europe, Middle East and Africa markets.

Founded in 2001, Emakina Group provides digital consulting, advertising, marketing, content creation, platform development, and data science and analytic services to its customers across EMEA markets. It is a multi-award winning digital agency currently operating in 26 offices across 18 nations.

The acquisition is likely to broaden the software engineering and IT consulting service provider’s digital and design portfolio. The integration of Emakina will enhance EPAM’s capabilities in digital strategy, engineering and creativity, thereby helping it provide better user experiences.

The buyout is anticipated to strengthen the company’s competitive position in marketing and creative services. Per the latest kbv research report, the global digital transformation market is estimated to reach $1.3 trillion in 2027 witnessing a CAGR of 20.8% during the forecast period (2021-2027). The acquisition of Emakina Group will reinforce EPAM’s position in the growing global digital technology market.

Acquisitions: A Key Growth Driver

In recent years, acquisitions have been crucial to EPAM’s growth. Such transactions not only enhance the company’s service capabilities but also enable it to enter new markets, diversify and broaden its product portfolio. In August, it announced the buyout of S4N, a leading Latin American software development services, to expand its global reach in the Latin American region.

Prior to that, in July, it acquired CORE SE, a professional service provider specializing in IT strategy and technology-driven transformations, to strengthen its position as a consultancy leader in the DACH region. In May, it bought Netherlands-based Just BI to boost its data and analytics services portfolio and Israel-based White Hat Ltd. to improve its cybersecurity portfolio. Needless to say, these back-to-back buyouts are meant to fortify the company’s position across multiple sectors.

Zacks Rank & Other Key Picks

EPAM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader computer and technology sector are Salesforce (CRM - Free Report) , Advanced Micro Devices (AMD - Free Report) and Adobe (ADBE - Free Report) . While Salesforce sports a Zacks Rank #1 (Strong Buy), Advanced Micro Devices and Adobe carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Salesforce, Advanced Micro Devices and Adobe are currently pegged at 16.8%, 46.2% and 19.1%, respectively.

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