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Having grown organically during the first four years of operation, Bengaluru-based IT company Happiest Minds is now considering acquisition of one or two smaller entities, a top official of the company said.
The company, according to its Executive Chairman Ashok Soota, “is in active dialogue on two-three fronts”.
“It will be in synergy with our line of business, but in one of the newer areas. We are focusing on the Internet of Things (IoT) in a strong way,” he said, without divulging too much on the proposed acquisition.
When persisted if Happiest Minds is in talks with an Indian IT firm or a foreign company, Soota said: “It could be a mix (in the sense) the promoters are not here. One of the two companies that we are actively looking to acquire is a US-based entity; either way – here or there – the market is abroad, so to that extent they are globally oriented.”
He further said about 70 per cent of his company's business is from the US, around 20 per cent from the UK and Europe and 10 per cent from India.
“Our domestic business is expected to touch 12 per cent. We are also eyeing the Australian market and West Asia. Our business from these two new geographies could account for 5 per cent of our business,” he added.
“These small acquisitions will be done with the money we have,” he said, quickly adding “we will go public in the next two-and-a-half to three years, in line with the roadmap that we had initially drawn. For now, we don't see the requirement to raise money.”
Asked why the company chose to take the inorganic route (when it is growing above the industry average), Soota said “to grow fast as also to develop specific skills and revenue. Acquisitions will be in a high-growth space, should be profitable as well, else it will impact our revenues.”
“Are you looking to expand your presence in Coimbatore?”. Pat came his reply “for a young company, we are already in too many locations – Bengaluru, Mumbai and Pune – the latter two cities because our clients insisted on our presence there. Coimbatore is a good location, but it is not in our radar now”.
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