The Hindu Business Line : Epicenter scouting for US buy

BUSINESS Process Outsourcing company Epicenter Technologies Pvt Ltd plans to set up its third centre in Mumbai soon. It is also scouting for an acquisition in North America in the range of $5 million - $10 million.

"We are looking at acquiring a company which is into `late stage collection'. It is a high value work and there are not many companies in India doing it. The factors driving the acquisition are customer base and domain expertise," said Mr Navanit, Chief Operating Officer, Epicenter Technologies.

"An acquisition in US or Canada will help us manage the sensitivities of outsourcing as well as bring economies of scale in bringing the work here," he said, adding that the company was looking for a profitable firm in the small and medium enterprise category.

"We have already got an in-principle approval from our board on the profile of the target company, its revenues and also the price we are prepared to pay ," Mr Navanit said.

He said the acquisition would likely be in the range of $5 million - $10 million. "We will have to raise some funds. Some of it will come from the existing investors and we may also look at a new investor. Since we are a niche player and there are enough suitors, raising funds should not be difficult," he said.

Stating that Epicenter had already identified a few companies in North America, Mr Navanit said the company expected to finalise the deal by April next year.

Epicenter already has two centres in Mumbai with 900 seats housing 1,200 professionals. "We should have the third centre in Mumbai by November or December this year.The new centre will have 350 seats and house an overall 600 professionals in various shifts," Mr Navanit said.

The company also plans to have a centre in another location next year. "We have the option of Delhi, Pune and Hyderabad. Although we have not worked out the details yet, the proposed facility could have a 500-seat capacity," he said.

More Stories on : Outsourcing | Mergers & Acquisitions

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