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The acquisition is expected to enhance Mascot's services portfolio and help it establish a presence in the BPO space.

BANGALORE, April 2

SOFTWARE services firm Mascot Systems is foraying into the IT-enabled services (ITES) space with the proposed acquisition of the contact centre and facility management business of the Delhi-based outsourced services provider, IT&T Ltd.

IT&T's contact centre business is being bought over for a cash consideration of Rs 18.88 crore while the facilities management business will cost Mascot Rs 2.39 crore, a company press release said.

The acquisition of the business process outsourcing (BPO) business will be done through Mascot's proposed BPO subsidiary, currently under formation. Mascot, which has signed an agreement to acquire IT&T's BPO business, will also acquire IT&T's Facility Management business by buying out IT&T Technology Services Ltd, a subsidiary of IT&T, the release said.

The acquisition is expected to enhance Mascot's services portfolio and help it establish a presence in the BPO space, the release said.

As part of the deal, Mascot will acquire over 400 employees of IT&T's BPO business, its infrastructure, equipment, facilities, contracts and intellectual property.

Mascot will acquire the customers and prospects of IT&T across the US and Europe. Also, the executive management team of IT&T's BPO business will become part of the Mascot Group and drive the day-to-day business. The facility management business, with over 200-people business, which caters to the domestic market, will become a wholly owned subsidiary of Mascot.

The acquisition was subject to necessary regulatory and statutory approvals, the release said.

Mascot has plans to rapidly scale up the acquired business - both, financially and operationally - over the coming two years by building upon Mascot's established strengths and competencies.

According to Gartner Group estimates, the global BPO market is expected to reach $234 billion by 2005. Nasscom and McKinsey have recently increased their projections for the Indian ITES market in 2008 to $21 billion from the $18 billion earlier.

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