Vietnamese IT company FPT on Wednesday signed its first mergers and acquisitions agreement to buy RWE IT Slovakia.

BERLIN/HA NOI (Biz Hub) — Vietnamese IT company FPT on Wednesday signed its first mergers and acquisitions agreement to buy RWE IT Slovakia, FPT announced.

The value of the deal was not disclosed.

RWE IT Slovakia, a subsidiary of Slovak energy corporation RWE, will be renamed FPT Slovakia. FPT Software will become the sole investor in the country.

"The M&A deal will enhance FPT Software's production capacity. It also means we will be able to use all sources to develop and provide the most efficient services to customers," FPT Software General Director Nguyen Thanh Lam said.

Established in 2004, RWE IT Slovakia has more than 400 employees, mostly experts in the Statutory Accounting Principles (SAP) software, specialising in supplying IT services, especially SAP and "Smart Home" solutions to its parent company.

Leaders of Slovakia's RWE IT and FPT in Berlin, Germany. — VNS Photos

According to FPT sources, after the deal, RWE will become FPT Software's largest client in Europe, with scores of contracts worth tens of millions of US dollar over five years. FPT Software expects the agreement will help the company expand operations in various areas in Europe and beyond.

"The agreement with RWE is a milestone that will raise FPT's position in Europe and the global market as well," FPT President Truong Gia Binh noted, adding "FPT now is rationally competent to provide long-term comprehensive IT services for infrastructure companies (gas, electricity and water, etc.) in Europe and other developed economies, such as the United States and Japan."

These latest acquisition is a part of FPT's strategy to expand its presence overseas.

In 2013, FPT earned US$130 million in revenue from overseas markets. In the first five months 2014, its revenue rose to $52 million, up 19 percent against the same period last year.

FPT aims to raise revenue further to $340 million in 2016. — VNS