VCCircle

Iteamic raised funding from Canbank Venture Capital last year, who has now exited the investment.

US-based CIBER Inc, a global system integration consultancy firm, has signed an agreement to acquire Bangalore-based Iteamic Pvt Ltd. The firm was formed in 2003 and last year raised Rs 5 crore ($1.25 million) from Canbank Venture Capital Fund Ltd. The fund has exited its investment in the company, VCCircle has learned. 

Iteamic is focused on providing software solutions in the financial services, banking and insurance segments. NYSE-listed CIBER, which reported revenues of $1.2 billion last year, plans to close the deal in next one month.  

The deal would allow CIBER to outsource some of its operations in USA and Europe to India. "CIBER has been winning a lot of deals wants to expand its offshore center in India," said Raghurama Kote, Founder & CEO, Iteamic. "We plan to have a larger presence now with addition of over 1,000 employees in next 18 months." 

For FY08, Iteamic reported revenues of $7.7 million with profits of $1.4 million. Iteamic has more than 200 employees and expects to do $7-8 million in revenue in this fiscal year. It has offices in Bangalore, New York and San Francisco.

This will not be CIBER's first acquisition in India. In 2005, it acquired Bangalore-based IT firm Knowledge Systems Pvt Ltd in a $2.5 million deal. CIBER also had a joint venture in India with iGATE solutions, from which it exited in 2005.

o3 Capital Advisors was the advisor in the transaction.