The Hindu Business Line : Induslogic plans two acquisitions during this year

The growth blueprint Target cos are in outsourced product development space. The acquisitions will be done through a combination of equity and cash. To hire 1,000 more professionals this year.

New Delhi , April 26

Close on the heels of announcing the merger of Nagpur-based Lambent with itself, Induslogic, a provider of outsourced product development services, is eyeing two acquisitions this year, involving companies with revenues of $5-10 million.

"We are currently talking to about 20 companies, and an overwhelming majority of these have back-end work in India. We are looking at companies with turnover of $5-10 million," Mr Peter Harrison, CEO of Induslogic, said.

Induslogic, which currently has 950 employees across two development centres in India, said the company was keen on acquisition of outsourced product development firms that have expertise in telecom, Voice over Internet Protocol (VoIP), or in the areas of finance and payment and security. "But besides these domains, we would also be looking at companies that are involved in testing and supporting products," he said.

WestBridge funding

These acquisitions would be done through a combination of equity and cash. Earlier this month, WestBridge Capital Partners had led a $12.5 million Series B funding round in Induslogic.

"Most of that money is being set aside for mergers and acquisitions," he pointed out.

Mr Harrison said that many of the target companies (for acquisition) were based in Hyderabad, Chennai and Pune, amongst other places.

"These are Indian companies which may be selling to Asia or the US markets, but do majority of their back-end work in India. We would also be interested in companies that operate on `software as a service' model. In other words, we could also acquire companies with hosted offerings," he said, adding that Induslogic was also looking at companies doing work in Eastern Europe and China.

To hire 1,000 more

Besides the inorganic growth blueprint, the company also plans to hire 1,000 more professionals this year.

"We will continue with the same level of organic growth. We are not constrained by the market, but by people," he said.

Of the new hiring, about 200 would come from colleges while the balance 800 positions would involve a lateral movement of people from other product and services companies.

Lambent merger

Induslogic had recently announced the merger of Lambent, a provider of mobile product engineering services, with itself. Induslogic had said that the merger would significantly extend its services reach and capabilities, and that the addition of Lambent's development teams' expertise in BREW and J2ME technologies will further accelerate mobile product development, test and porting for its partners.

More Stories on : Outsourcing | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Induslogic plans two acquisitions during this year

Petroleum product sales growth flat in 2005-06

Students going abroad can get medical cover here `at better rates'

Airlines to hike fuel surcharge from May 5

Maruti Q4 net up 39 pc

Corporation Bank Q4 net dips 6.8 pc

NSE tightens derivatives norms

Dabur eyes acquisitions abroad

FII buying pushes Sensex up 292 points