Chakkilam Infotech buys US testing company

M. Somasekhar Hyderabad | Updated on October 03, 2011

Chakkilam Infotech, a software testing services company, today announced the acquisition of Cigniti Inc. US in an all-stock deal.

Cigniti, based out of Irving, Texas offers consulting and testing services mainly to clients in the US and had declared revenues of $18 million last year.

Chakkilam Infotech, the Hyderabad-based company, will emerge a $22-million revenue combined entity with 600 employees globally post the acquisition, according to Mr Sriram Rajaram, Executive Vice-President (Operations).

While not disclosing the value of the deal, Mr Sriram told Business Line that the acquisition will make Chakkilam Infotech, the largest India-based independent testing services company. It will also enable the company to expand its footprint in the US market and setup Test Centres of Excellence for Ciginiti's enterprise clients.

Cigniti complements Chakkilam Infotech's expertise in areas such as test consulting, management, automation, and performance, which reduces the overall costs of testing and provides solutions that cannot be solved using standard tools.

The 13-year old Chakkilam Infotech, promoted by Mr C.V. Subramanyam (who also holds 44 per cent equity) and present Managing Director, has 350 employees. Its main India-based competitors are Maverick Systems and Thinksoft Global. Recently, a big player in the testing market — AppLabs was acquired by CSC.

Mr Sudhakar P., CEO of Cigniti Inc, said, “Software companies all over the world are looking to engage with testing labs offering the whole gamut of services and by joining hands we can be a global leader in the independent testing services space in the next few years.”

The recent 2011 Nasscom report on software testing forecasts independent testing services in India to grow to $13-15 billion by 2020 at a CAGR of more than 20 per cent.

Published on October 03, 2011

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