Japanese conglomerate Hitachi Ltd, through its wholly-owned subsidiary Hitachi Systems Ltd, has acquired controlling stake (approximately 76%) in the New Delhi-headquartered IT services company Micro Clinic India Pvt Ltd for an undisclosed financial consideration.
With this, Hitachi Systems will enter the Indian IT market by March-end when the deal and share transfer will be completed.
Tarun Seth, Managing Director, told
The company will now be known as Hitachi Systems Micro Clinic Pvt Ltd and he (Seth) will continue as Managing Director in it. The company’s 650-strong staff will also continue in the new set up.
Established in 1993, Micro Clinic’s turnover is expected to be around ₹150 crore this fiscal, he said.
This acquisition of stake will enable Hitachi Systems obtain a business platform in India to build value chain by leveraging synergies between the two companies.
The two companies had announced on Wednesday their share purchase agreement and shareholders’ agreement to bolster the IT services business in India.
Hitachi Systems, a core company of Hitachi’s information and telecommunication systems business, aims to grow revenues in India by nearly three times to ¥300 billion by March 2016, compared with the fiscal year ended March 31, 2012.
Micro Clinic, which will now be a group company of Hitachi Systems, has 15 business sites in major cities across India, and nearly 150 satellite offices, providing a broad range of IT services centred on the supply of IT platforms and maintenance services. It is working to strengthen virtualisation services, managed services and other services, with the aim of driving further business expansion, he said.
The new company will provide Indian enterprises, Japanese companies and other foreign-affiliated companies in India with one-stop services extending from procurement of IT equipment to systems design and, integration, operation and maintenance. This will be done by combining both the companies’ products and services, technologies and know-how, and business resources.
In addition, the two companies will work closely with the Hitachi Group companies in India in a push to expand the IT services business in the country.