Fujitsu has an extensive M&A program that it calls ‘transformation services in a very competitive’ market. The Japanese tech company has come up with 20 potential companies that it would like to acquire.
An acquisition consultant from McKinsey, Nicholas Fraser, joined the company last year March and has been leading the investment program.
He wrote in the 2020 Fujitsu fiscal report that to build the capability the company needs, they have to deliver what the customers want, move quickly, and evolve at the same time.
A continuous process
He added that inorganic growth, in both acquisitions and venture investments, is a great way for the company to speed up its plan. Inorganic growth, he says, is best done following a program. That means doing a few deals every year but is not limited to just one or two but every few years.
According to Fraser, digital transformation is about having digital technologies and transformation capability.
Fujitsu is filling its investment pipeline with opportunities that help it on all fronts, including AI, cybersecurity, advanced data, and analytics, while also engaging its customers in discussing transformation.
The era of change for Fujitsu
Adopting 5G phone services is one of the opportunities Fujitsu could take, now that Huawei is banned in many of the markets that Fujitsu would have no trouble operating in.
The coronavirus pandemic has pushed the adoption of Fujitsu products up since remote working and digital services are in high demand. The acquisition plan is part of a $5.7 billion drive to transform the company and usher in a new era of transformative and emerging tech.
Fujitsu president and CEO, Takahito Tokita, spoke at the 2019 Fujitsu annual forum where he said that the company’s dependence on hardware, made it unbalanced.