September 2008

Done Deals

PE / VC Fund Investments

Idhasoft raises $30-M from Arcapita Bank

Mumbai, MH-based IT services firm Idhasoft has raised $30 million from Bahrain-based Arcapita Bank, reports PTI. The fresh funds will be deployed in overseas acquisitions. 

For more information: 

http://www.ptinews.com/pti%5Cptisite.nsf/0/0D23CE5B1179AD6E652574B6002B8E18?OpenDocument 

http://www.idhasoft.com

Pressmart Media raises $6-M from DFJ, NEA IndoUS

Pressmart Media Ltd., a Hyderabad, AP-based provider of digital publishing services, has raised $6 million (about Rs. 26 crore) from Draper Fisher Jurvetson and NEA IndoUS Ventures. Pressmart will use the funds to set up offices in the US and UK.

http://www.pressmart.net/newsroom.html

Newgen Software raises funds from SAP Ventures

New Delhi, DL-based IT services firm Newgen Software Technologies Ltd. has divested a minority stake to SAP Ventures for an undisclosed amount, reports PTI. The funds will be used to widen the company's client base and enter new markets.    

Earlier this year, Newgen divested a 10% stake to HSBC Private Equity for $7.5 million.

For more information:

http://business-standard.com/india/storypage.php?autono=46353&tp=on

http://www.newgensoft.com

Back to top

Other Private Equity / Strategic Investments

BCCL acquires stake in Intellisys Technologies

Mumbai, MH-based media group Bennett, Coleman & Co. Ltd. (BCCL) has acquired an 8% stake in Kolkata, WB-based IT products & services firm Intellisys Technologies & Research for an undisclosed amount, media reports indicate.

http://www.itexaminer.com/intellisys-plans-rd-project-near-kolkata.aspx

Mergers & Acquisitions (Outbound)

Cranes to acquire German firm Cubeware for $26-M

Bangalore, KA-based listed IT services firm Cranes Software International Ltd. is to acquire Germany-based Cubeware GmbH for €18 million (about $26.2 million). About €12 million would be paid in cash and €6 million in stock.

For more information: 

http://www.bseindia.com/qresann/news.asp?newsid={89579AFD-7D89-4720-A201-E3E1662CFB6E}&param1=1 

http://www.cranessoftware.com

QAI India buys out US parent in $15-M deal

New Delhi, DL-based IT services and BPO firm QAI India Ltd. has bought out its US-based parent QAI Worldwide for about $15 million, reports Economic Times. QAI Worldwide was a minority stakeholder in the Indian subsidiary. Investors in QAI India include 2i Capital, Prudential ICICI, Chefecor Fund and BTS Investment Advisors.

http://economictimes.indiatimes.com/articleshow/3469013.cms 

Idhasoft acquires US Co. for $6-M

Mumbai, MH-based IT services firm Idhasoft has acquired California,US-based Ubex Corp. for about $6 million (Rs. 24 crores). 

For more information: 

http://www.ptinews.com/pti%5Cptisite.nsf/0/0D23CE5B1179AD6E652574B6002B8E18?OpenDocument 

http://www.ubex.com

Wipro acquires US firm Gallagher for $6-M

Bangalore, KA-based IT services firm Wipro Technologies has acquired US-based mortgage services provider Gallagher Financial Systems for $6 million, reports Business Standard. Gallagher, which employs over 150 people in the US, has been renamed Wipro Gallagher Solutions.

For more information:

http://business-standard.com/india/storypage.php?autono=334885

http://www.gogallagher.com

Mold-Tek to acquire RMM Global

Mold-Tek Technologies, a Hyderabad, AP-based provider of packaging, engineering and KPO services, is to acquire US-based RMM Global, and its Thane, MH-based associate company Technet Engineering Services, for an undisclosed amount, reports Economic Times. RMM is involved in providing structural engineering KPO services to high rise buildings in the US with annual revenues pegged at $ 2 million. 

For more information: 

http://www.business-standard.com/india/storypage.php?tp=on&autono=45058 

http://www.moldtekindia.com

Cambridge Technology acquires US firm Protege Software

Hyderabad, AP-based listed IT services firm Cambridge Technology Enterprises is to acquire US based Protege Software Services for an undisclosed amount. Protege provides professional services for Oracle applications.

http://tinyurl.com/6d49an

Infotech Enterprises to acquire US firm Time To Market

Hyderabad, AP-based listed IT services firm Infotech Enterprises Ltd. is to acquire California, US-based Time To Market, Inc. and its Indian arm TTM India for an undisclosed amount. Established in 1998, Time To Market is focused on backend physical design within ASIC design. It caters to several semiconductor manufacturers. It has 40 engineers in San Jose and another 80 in Hyderabad and Bangalore.

http://www.infotech-enterprises.com/pdf/Infotech-ttm.pdf

Ranklin acquires US firm Cigniti

Hyderabad, AP-based software development firm Ranklin Solutions has acquired US-based ERP firm Cigniti for an undisclosed amount, reports Business Standard. Cigniti also has presence in the UK, Australia and New Zealand and has over 250 employees on its payroll.

Ranklin had acquired IT and BPO firm Logic Bytes in May this year for Rs. 1 crore.

http://business-standard.com/india/storypage.php?autono=334381

Mergers & Acquisitions (Domestic)

CFC India to be merged with Continuum

The BPO arm of Countrywide Financial in India, CFC India Services, is to merge with Bank of America’s (BankAm) non-banking subsidiary Continuum Solutions, reports Economic Times. The deal is part of BankAm’s $2.5 billion global takeover of the loss-making Countrywide.

http://economictimes.indiatimes.com/articleshow/3391555.cms

Venturing Abroad

Tech Mahindra acquires stake in UK firm Servista for $2-M

Pune, MH-based listed telecom software firm Tech Mahindra Ltd. has acquired a 17% stake in a UK-based systems integration firm Servista for about $2 million (Rs. 8 crore), reports Business Standard. Tech Mahindra will have options to purchase additional shares in the company to take its stake to over 30% upon Servista achieving certain business targets over the next four years. 

For more information: 

http://business-standard.com/india/storypage.php?autono=332888 

http://www.techmahindra.com

Back to top

Deals in the Making

Private Equity / Strategic Investments

Tata Sons looking to divest stake in TCS

Tata Sons, the unlisted holding company of the Tata Group, is considering options to divest part of its stake in Mumbai, MH-based listed IT services firm Tata Consultancy Services (TCS) to fund the group’s expansion plans, especially in telecom, reports Economic Times. Currently, Tata Sons holds a 74.8% stake in TCS.

http://economictimes.indiatimes.com/articleshow/3409278.cms 

IPOs

IT firm Softline plans IPO

Hyderabad, AP-based IT services firm Softline Software Services is considering a Rs. 100 crore IPO to partly fund its expansion plans, reports Business Line. The IPO is likely to be launched by June 2009.

http://www.thehindubusinessline.com/2008/09/19/stories/2008091952090400.htm

Back to top

Mergers & Acquisitions

HCL Tech to counter Infosys bid for UK firm Axon

New Delhi, DL-based listed IT services firm HCL Technologies plans to launch a bid for UK-based SAP consultant Axon Group, reports Economic Times. Bangalore, KA-based Infosys Technologies recently announced a deal to acquire Axon for &750 million. HCL plans to offer 15% over and above Infosys’ offer.

For more information:

http://economictimes.indiatimes.com/articleshow/3460445.cms

http://www.axonglobal.com

Promoter, PE investors looking to exit IT firm Firstsource

ICICI, Temasek and Metavante are looking to divest a combined 68% stake in Mumbai, MH-based listed IT services firm Firstsource Solutions, reports Economic Times. The report estimates the deal size at Rs. 1,865 crore. While ICICI is the promoter of Firstsource, Temasek and Metavante are its major shareholders. Potential bidders for the stake include WNS Holdings and Genpact.

http://economictimes.indiatimes.com/News/rssarticleshow/3409113.cms

Satyam Computer may consider bigger buyouts

Hyderabad, AP-based listed IT services firm Satyam Computer Services is looking to make big-ticket buyouts instead of niche small ones, reports Economic Times. The company bought six firms over the past three years, though the ticket size for each acquisition was in the sub-$50 million range.

http://economictimes.indiatimes.com/articleshow/3456159.cms

InfoVision may be acquired by UK firm Servco

UK-based Serco Group is in talks to acquire Gurgaon, HR-based BPO firm InfoVision Group for Rs. 200-250 crore, reports Economic Times. InfoVision employs over 11,500 people at centers in India, the US and Australia.

For more information:

http://economictimes.indiatimes.com/rssarticleshow/3450129.cms

http://www.infovisiongroup.com

Calsoft looking to exit non-core businesses

Chennai, TN-based IT services firm California Software Company (Calsoft) is looking to divest its 66% stake in Codex Ltd., a Japan-based trading services provider, and 51.3% stake in Kochi, KL-based Team Frontline, reports Business Line.

http://www.thehindubusinessline.com/2008/09/02/stories/2008090251420400.htm 

Genpact, Wipro, Copal in race to acquire Lehman’s Indian BPO operations

IT firm Wipro Technologies and KPO firm Copal Partners have expressed interest in bidding for the Indian back office business of Lehman Brothers Holdings, the US-based investment banking firm that recently filed for bankruptcy protection, reports Economic Times.

http://economictimes.indiatimes.com/articleshow/3510640.cms

HCL Tech scouting for US acquisitions

New Delhi, DL-based listed IT services firm HCL Technologies is considering acquisitions worth $1-2 billion (around. Rs 4,600-9,200 crore) in the US and planning to close the deals by 2011, reports Business Standard. The company also has identified eight focus areas such as engineering services, enterprise application, infrastructure management and enterprise transformation services.

http://business-standard.com/india/storypage.php?autono=334867

Patni Computer scouting for Asia-Pacific acquisitions

Mumbai, MH-based listed IT services firm Patni Computer Systems is scouting for acquisitions in the Asia-Pacific region, especially in Japan, reports PTI.

http://business-standard.com/india/storypage.php?autono=335061

Back to top

We encourage forwarding or any other manner of re-sending of this newsletter to your industry colleagues on a once-per-user basis, provided you also copy (“cc”) info@ventureintelligence.in.

Any other unauthorized redistribution is a violation of copyright law.

Back to top

Venture Intelligence is the leading source of information and networking services to the private equity and venture capital ecosystem in India. Our products include Databases, Newsletters and Reports - all focused on tracking deal activity in India.

Our subscribers include top executives at Private Equity and Venture Capital Firms, Investment Banks, Limited Partners, Law Firms, HR Services Firms and Consulting Firms in India, USA, and the Asia-Pacific.

For more information, visit http://www.ventureintelligence.in. For advertising and sponsorship opportunities, please email us at info@ventureintelligence.in.

Back to top