By Mayumi Negishi and Noriyuki Hirata
TOKYO (Reuters) - Japan's Fujitsu Ltd (6702.T: Quote, Profile, Research, Stock Buzz) is seeking acquisitions abroad this year to expand in software services, and is keen on France, an executive said on Wednesday.
Fujitsu, which faces a saturated home market, seeks growth in the lucrative IT services sector, while it struggles with losses at its unit that produces microchips, used to control devices such cameras and flat TVs, and its hard drive operation.
"We will continue to seek M&A this year, and France is one of the three major markets in Europe, along with the U.K. and Germany," Fujitsu Senior Executive Vice President Chiaki Ito told the Reuters Global Technology, Media and Telecoms Summit in Tokyo. "We will also seek acquisitions on a smaller scale in Asia."
Fujitsu launched a hostile bid for French computer services firm GFI Informatique (GFIP.PA: Quote, Profile, Research, Stock Buzz) last year. That deal fell through after management demanded a higher price.
Fujitsu aims to get more share in a highly fragmented IT services market, in which clients tend to favor local firms. The world's biggest six companies together only hold about 20 percent of the market.
IT services firms in France include Capgemini (CAPP.PA: Quote, Profile, Research, Stock Buzz), Atos Origin (ATOS.PA: Quote, Profile, Research, Stock Buzz) and Groupe Steria (TERI.PA: Quote, Profile, Research, Stock Buzz).
NICHE PLAYER
While its consulting and outsourcing business have been lucrative, Fujitsu has so far been unable to keep up with price falls in its loss-making chip and hard drive operations. Continued...
© Thomson Reuters 2008. All rights reserved.
| Paper | Aug 20 - 21, 2008 | Manufacturing |
| Japan Investment | Jul 01 - 2, 2008 | Country Summits |
| Global Real Estate | Jun 23 - 25, 2008 | Real Estate |
| Consumer and Retail | Jun 16 - 18, 2008 | Consumer Retail |
| Investment Outlook | Jun 09 - 12, 2008 | Financial Services / Exchanges |
