Business Daily from THE HINDU group of publications
Sunday, Mar 23, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Sunday, Mar 23, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
|
Home Page
-
Overseas Investments Info-Tech - Mergers & Acquisitions Industry & Economy - Economy IT sees dip in merger & acquisition deals in value terms
Moumita Bakshi Chatterjee New Delhi, March 22 Fears of looming slowdown may have dampened IT and BPO industry’s appetite for large cross-border merger and acquisition deals. The total value of cross-border deals in this space stood at over $203 million during the first two months of 2008, less than half the levels notched in the same period of previous year, although the number of deals was marginally higher. During January and February of 2008, companies stitched 18 M&A deals in the cross-border category (where Indian IT/BPO companies acquired overseas firms or vice versa), of which 14 were outbound transactions. In the corresponding period previous year, the number stood at 15, with 10 outbound deals fetching $520 million, according to advisory firm Grant Thornton. “Clearly the slowdown is reflecting in the value. The correction is being driven by the dollar play as well as the global meltdown. The IT stocks are coming off their highs and the companies are also tightening their belt,” Mr Harish H V, Partner- Corporate Advisory Services, Grant Thornton, said. Notable amongst the deals was HCL Technologies Ltd’s acquisition of US-based CapitalStream Inc, in an all-cash deal of about $40 million. NIIT Technologies announced the acquisition of Germany-based SofTec GmbH, a specialist in IT solutions and services in the airline revenue accounting and operations space. Satyam Computer Services also announced the acquisition of a Chicago-based management and consulting firm Bridge Strategy Group, for $35 million, in an all-cash deal. Mindtech (India) Ltd. acquired Infotech Consulting, a Pennsylvania-based multi-disciplined technology services firm for $21 million. Commenting on the deal flow, Mr Avinash Vashishta, MD of Tholons, an offshore advisory said, “The liquidity in the market has dried up and that has accounted for a drop in M&A activity. “In addition, since the valuations are down, many companies that were on the block to be acquired are also waiting and watching for the situation to stabilise.” IT tremors… but not yet an earthquake ‘Offshoring set to slow down’ More Stories on : Overseas Investments | Mergers & Acquisitions | Economy | Software
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
