The Hindu Business Line : AppLabs to raise $25 m for acquisition

AppLabs Technologies, independent testing services provider, has zeroed in on an acquisition and plans to raise $25 million to meet its expenses. As a part of this effort, it has finalised a $10-million fund infusion from Sequoia Capital.

So far Sequoia Capital has invested $17 million in AppLabs, the first round was witness to $7-million fund infusion through Westbridge Capital, which has since merged with Sequoia.

The Chief Executive Officer of AppLabs, Mr Sashi Reddi, said "we expect to finalise and announce the acquisition also in the testing space, focussed on the financial services market, in a couple of months. Of the $25-million, we expect to raise $12 million through debt."

Addressing a press conference here, Mr Reddi said that the company currently employed about 950 people at its testing centre in Hyderabad and about 80 people in the US. It works with major software companies such as Cisco and Sun Micro, offering them software-testing services.

"The market for testing services is rapidly expanding and we expect to add the capability of testing services within the financial services market through the proposed acquisition ," he said.

"Once the new acquisition is completed, and we record three four quarters of combined entity, we may consider the possibility of an initial public offer," Mr Reddi said.

More Stories on : Mergers & Acquisitions | Venture Capital | Software

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