IT Carve Out
Expertise and Turnkey Solutions

Turn Carve-Out challenges into strategic opportunities!

In an ever-changing economic world, companies often have to divest themselves of non-strategic activities in order to refocus on their core business. This operation, known as a carve-out or spin-off, can be technologically and operationally complex, and therefore costly. However, with a rigorous approach and an experienced partner, a carve-out project can be carried out with limited and controlled risks, placing the acquisition in the best possible conditions to develop its business plan.

At Netsystem, we put our in-depth expertise at your disposal to support you throughout this transition. Whether you need IT due diligence, an IT separation program or post-carve-out support, we offer a turnkey solution tailored to your specific needs.

Why choose Netsystem for your Carve-Out?

Recognised expertise in IT carve-outs

With more than 50 successful carve-out projects to our name, we have helped companies in all sectors to overcome the technical and organisational challenges of separating their activities. Our IT M&A experts are renowned for their ability to anticipate challenges and offer tailored solutions, ensuring a smooth and efficient transition.

Our achievements include :

  • Make complex information systems autonomous.
  • Guarantee uninterrupted service continuity.
  • Meeting strict deadlines and budgets.
  • Managing the operation in an international context.

A structured approach to successful IT Carve-Out

Analysis and planning

We start with an IT due diligence, identifying critical assets, potential risks, possible technical liabilities and opportunities for improvement and simplification. We also measure dependency on the vendor's IT system. This rigorous analysis enables us to design a clear roadmap tailored to your acquisition strategy.
To this we add the budgetary elements linked to the cost of separation (one-off costs), an initial estimate of the recurring costs of the IS in autonomous mode (OPEX) and an operational model for the future IS.
Finally, we advise and assist with the drafting and negotiation of the constituent elements of the TSA (Transition Services Agreement), in particular on the definition of the services required for operations, but also on the framework of activities linked to the separation project.

01

Information system separation

IS separation is a crucial stage in any carve-out. At Netsystem, we ensure a transition that guarantees operational continuity, thanks to careful planning and our expertise in these projects.

This includes the preparation and coordination of a multi-disciplinary program:

  • ERP and business application migration
  • Deployment of networks and Internet access
  • Implementation of infrastructure services
  • Creation and installation of new user work environments
  • Implementation of support and maintenance services

Throughout this project management phase, we supervise the successful execution of the TSA and the gradual decommissioning of its component services.

02

Post Carve-Out support (Post Merger Integration)

Once the separation is complete, we continue to provide support for the first 100 days.

In support of management, our support includes setting up a new IT environment, optimising processes and monitoring the performance of the new IS.

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Talk to an IT M&A expert

For any questions or projects (Carve out, IT Due diligence, Vendor Due Dil, …), please do not hesitate to contact our IT M&A experts.

Carve-Out IT: the answers to your questions

What is an IT Carve-out?

An IT Carve-out is the process of separating an entity’s technology assets, information systems and data, usually as part of a sale or restructuring. This includes the creation of an autonomous IT environment for the new entity, while maintaining business continuity.

When is an IT Carve-out necessary?

An IT Carve-out is required in a number of situations, including :

  • The sale of a company division or subsidiary.
  • The creation of a joint venture.
  • Internal restructuring to separate activities.
  • A spin-off or outsourcing.
What are the specific challenges of an IT Carve-out?

The main challenges include :

  • Separation of shared systems: ERP, CRM, networks, databases.
  • Business continuity: Avoiding interruptions during the transition.
  • Data protection: Separating data in compliance with regulations (RGPD, etc.).
  • Managing interdependencies: Technologies, software licences, supplier contracts.
  • Planning and execution: staying on time and on budget despite complexity.
What are the main objectives of an IT Carve-out?

The objectives are :

  • Guarantee technological autonomy for the new entity.
  • Ensure a smooth transition without business interruption.
  • Minimise operational and security risks.
  • Optimise separation and migration costs.
Does Netsystem operate in all sectors of activity?

Yes, we have expertise in a number of sectors, including :

  • Industry
  • Healthcare
  • Finance and insurance
  • Retail and distribution
  • Energy
  • Aerospace
  • Defence

Our approach is tailored to the specific features and challenges of each sector.

How long does an IT Carve-out take?

The duration depends on the size and complexity of the entity concerned.

  • Small organisations: 3 to 6 months.
  • Complex or multi-site entities: Up to 12 months or more.

Good planning and the right tools can reduce lead times without compromising quality.

What deliverables does Netsystem provide for an IT Carve-out?

At the end of the project, we will provide you with :

  • A detailed IT transition plan.
  • An inventory of separate systems and their status (migrated, shared, deactivated).
  • An operational continuity report with the tests carried out.
  • Recommendations for optimising the new entity’s IT environment.
How can business continuity be guaranteed during an IT Carve-out?

We put in place :

  • Contingency plans to avoid interruptions.
  • Close collaboration with business and IT teams.
  • Extensive testing before the transition.
  • A post-transfer support phase to resolve any problems that may arise.
What are the costs associated with an IT Carve-out?

Costs vary according to a number of factors:

  • Complexity of the systems to be separated.
  • Number of users and sites involved.
  • Software licences and infrastructure required for the new entity.
  • The cost of steering and coordinating the project
What are the common mistakes in an IT Carve-out?
  • Underestimating the interdependencies between systems.
  • Neglecting regulatory compliance when separating data.
  • Lack of coordination between business and IT teams.
  • Insufficient testing before going live.

To find out more about IT M&A transactions

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