Integreon, a Mumbai-based back office outsourcing firm backed by Ayala Corporation of Philippines and private equity firm Actis, plans to invest more in developing internal proprietary solutions, rather than aggressively looking at overseas acquisitions.
The firm raised $50-million private equity funding two months back from Actis and plans to utilise the fund to strengthen its own capabilities. It plans to invest the funds in developing new technologies, better products and solutions to meet the growing demand of its clients.
Lokendra Tomar, COO, Asia Pacific, Integreon, told VCCircle that the firm is currently in the process of combining the IT products with the process and people and will give more focus on developing internal proprietary solutions. However, he did not rule out the acquisition plans but, said, “acquisition is not a strong priority this year.”
The company acquired two firms last year, OnSite Sourcing Inc and Grail Research, which helped it expand its footprint in China and South Africa, respectively. He said the acquisitions have added two major capabilities to the business, one in legal side while the other in research. Through OnSite buy, Integreon has strengthened its legal capabilities with access to technology and an e-discovery platform, while Grail strengthened its research and analytics portfolio.
Integreon is currently offering solutions in four major areas which include legal solutions, document solutions, research solutions and business services. This year, the company will look for possible buys in areas that will add to its legal capabilities side, Tomar says.
Tomar says, OnSite and Grail have added significant value to the company in top line growth as well, besides enhancing its solutions and expanding company presence in two new geographies. Integreon has achieved a revenue run rate of around $89 million in the year ended by December 31, 2009, and is expecting around $100 million in 2010. The company claimed about 100% growth rate over the last year. “These were primarily driven by the acquisitions we have done, as well as by organic growth,” explains Tomar.
Integreon is active with its expansion plans in Europe and the US eying Eastern Europe and Latin America. It also expand operations in Asia. The company is expecting 50% organic growth every year.
Integreon has acquired six companies so far, three in the LPO and two in KPO space. It currently has around 100 clients in its portfolio comprising law firms, investment banks and corporations, and has about 2,000 employees worldwide, of which about 1,200 are in India.