The Hindu Business Line : Hexaware looking to shop in US/Europe

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Chennai Feb.22 Hexaware Technologies Ltd plans to buy an information technology company in Europe or the US for $20-$40 million (Rs 90-180 crore), according to its Executive Chairman, Mr Atul Nishar.

"We did a recent acquisition in the US, and would preferably like to do the next one in Europe," he told newspersons on the sidelines of a seminar.

Hexaware is looking at a company in the US or Europe with expertise in SAP or Oracle, and present in BFSI (banking, financial services and insurance) and transportation domains, he said.

General Atlantic, a private investment company that recently picked up a 15 per cent stake in Hexaware, was validating the company's acquisition strategy, Mr Nishar said.

In November, Hexaware acquired 100 per cent stake in FocusFrame, a US-based testing consulting company for $34.3 million (Rs 154 crore). FocusFrame is a California-based company specialising in automated testing of ERP and custom applications.

Expansion

According to Mr Nishar, acquisition was part of the company's goal to become a $1-billion company — he did not give a timeframe to reach the milestone — from global revenue of $185 million in 2006. Hexaware is also increasing its infrastructure across the country, he said.

Earlier, addressing a seminar on Financial Partnerships for Quantum Group organised by the Madras Chamber of Commerce and Industry, Mr Nishar said other goals set by the company include centres in South America, East Europe and China and to be listed on a US stock exchange - he did not give a timeframe.

On choosing a private equity (PE) than at other funding options, including FCCB (foreign currency convertible bonds), debt, global depository receipts, India offering and private placement, Mr Nishar said a PE company adds value to the company's strategies. For instance, General Atlantic supported the company's recent acquisition and would continue to do so in the second.

The PE company also acts as a reference, if required, for a large deal; brings bring global best practices in areas of interest and has have a board representation (a person from the US), which was important to tap the American market, he said

Related Stories:
Hexaware buys FocusFrame

More Stories on : Mergers & Acquisitions | Software

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