Dallas-based information technology firm Adea Technologies is said to be in talks for a possible sellout and could be in talks with a French IT player for a possible deal. Sources say that Adea, which has offices in Hyderabad and Bangalore, could be looking at a valuation of around $50
million for a sale. The identity of the French suitor could not be ascertained though the deal has reached the term sheet with due diligence going on in the recent weeks. No definite agreement has been agreed upon by the parties as of yet, said sources.
Adea, which was founded in 1996 by Abid Abedi, has around 1,500 employees in India and the US. The firm started as a onsite IT services player but later transformed into an offshoring player.
The firm provides services in four areas – information technology services, SAP, management consulting and business process outsourcing (BPO). Adea derived most of its revenues from on-site assignments during the earlier part of this decade with its revenues peaking at $150 million. The firm currently has revenues in the range of $30 million to $50 million.
Emails sent to Adea chairman Abid Abedi and CEO Shouvik Bhattacharyya did not elicit a response at the time of filing this article.
Adea has around 100 customers in sectors like retail, healthcare, telecom, technology, manufacturing and communications. The firm has closed several acquisitions over the years including Bangalore-based outsourced software development firm Netkraft Private Limited in 2004 and Texas based SAP firm CVR Consulting in 2007.
Abedi had spinned off of Adea’s technical staffing business in 2007, forming Managed Staffing, Inc.
Several global IT majors have been eyeing acquisitions in the Indian IT market or with companies with major development centers in India. There have already 21 inbound acquisitions in the Indian IT space worth $638 million till date in this calendar year. This constitues more than 50% of the deal value of the entire IT related M&A in India this year, according to VCCEdge.
Some of the large deals include French IT firm Atos Origin’s $100 million buy of Venture Infotek and NTT Data Corporation’s $199 million buy of Intelligroup Inc.