The Hindu Business Line : Allsec scouts for US buy

Chennai, July 8 Chennai-based BPO Allsec Technologies plans an acquisition in the US for around $40 million (around Rs 165 crore), according to its president Mr Adi Saravanan.

Mr Jagadish Ramamoorthi, CEO, has been relocated to the US from Chennai to identify the potential company. With the Indian rupee appreciating significantly against the US dollar in the past few months, “we need more volume” and an acquisition is the right way in the present situation, Mr Saravanan told Business Line.

Around seven companies have been identified for a possible acquisition. “I cannot give a time frame. We want to do it soon,” he said.

Allsec targets $100 million business in the next two years from around $35 million now. This fiscal, the company will grow by around 40 per cent. The acquisition should help the company achieve the target, he said.

To fund the acquisition, Allsec will use the money it received from First Carlyle Venture Mauritius, a global private equity firm belonging to the Carlyle Group. In July last year Carlyle invested $17.1 million (Rs 78 crore) for a 20 per cent stake in Allsec. The company will also use funds from its internal accruals, Mr Saravanan said.

Allsec currently has around 3,000 employees.

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

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