The Hindu Business Line : ITC Infotech acquires US firm

Bangalore, Aug. 19 IT services provider ITC Infotech India Ltd, a fully owned subsidiary of ITC Ltd, said on Tuesday it had acquired Pyxis Solutions, a US-based company offering quality assurance solutions and testing services.

The enterprise value of Pyxis Solutions is $25 million, said Mr Sanjiv Puri, Managing Director, ITC Infotech. He said it was an all cash deal, and has been funded internally.

“Pyxis Solutions brings on board differentiated capabilities and expertise which compliment our service offerings,” Mr Puri said. Pyxis has become a wholly-owned subsidiary of ITC Infotech (USA) Inc, he added.

Domain expertise

Pyxis offers software quality assurance to the banking, financial services and insurance segment. It has deep domain expertise and unique testing methodologies that would benefit ITC Infotech, Mr Puri said.

The acquisition will also help ITC Infotech to cross-sell its existing services to Pyxis’s customers, he added. Mr Amar Duggal, Chief Executive, Pyxis Solutions, said they can now bring on board the benefits of scalability, a robust global delivery model and strong offshore base.

The global testing market is valued at $13 billion, of which about 50 per cent is outsourced, said Mr Puri. He said the benefits of the acquisition would be seen in the next few months.

The employee strength in ITC Infotech would increase to 3,300 after acquisition from 3,000, it said. The company had revenue of about Rs 400 crore in fiscal 2008. .

More Stories on : Mergers & Acquisitions | Software | Overseas Investments

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