| Log in

Is Glodyne Technoserve Buying US Firm DecisionOne Inc?

13 April, 2010

Is BSE-listed technology services firm, Glodyne Technoserve Ltd, brewing a mid-sized, cross-border acquisition? Speculation is rife that the Mumbai-based remote infrastructure management services provider, which clocked revenues of Rs 501 crore in 2008-09, may be looking at acquiring US-based privately-held firm DecisionOne Inc, which offers technology support and services servers, desktops, networks and other IT equipment.

A deal to this effect is expected to be announced in about two weeks, VCCircle has learnt. A Glodyne spokesperson declined to comment on “market speculation” while VCCircle could not reach DecisionOne for their response.

If the deal materialises, it would be the second acquisition for Glodyne in 10 months. More than that, the possible deal would be interesting because DecisionOne is nearly a $200-million company (as per 2007 data while current figures could not be ascertained), much bigger in size compared to Glodyne, the acquirer. Besides, DecisionOne filed for bankruptcy under Chapter 11 in the US court most recently in 2005 (earlier in 2000) following which it undertook a reorganization and restructuring exercise. In 2005, the company completed the sale of call centre operations and also sold off some contract manufacturing assets as part of the restructuring. The company generated cash as well as transferred over 1,000 employees to the buyers, in the process, VCCircle has learnt.

Buying a much larger and challenging asset by Glodyne is a move that has surprised many in the deal-making circles.

According to market buzz, the Indian firm may be getting the asset at a much attractive price given that the global economic slowdown has mellowed valuations of IT assets particularly in the US market.

Till some years back, private equity firm Cerberus Partners LP is understood to have been the largest shareholder in DecisionOne. The current ownership details of DecisionOne could not be ascertained.

Glodyne offers IT services, technology infrastructure management services and consulting services while DecisionOne has over 2,000 professionals under its fold and has clients across retail, healthcare, travel and hospitality, education, original equipment manufacturers (OEMs), and resellers space.

Glodyne stocks were traded at Rs 735.05, up by Rs 2.35 or 0.32%‎ at 1:53 pm in the Bombay Stock Exchange today. At the prevailing prices, the company has a market capitalisation of Rs 1,646.74 crore. In the financial year 2008-09, Glodyne has posted revenue of Rs 501 crore against Rs 307 crore a year ago.

Earlier in July 2009, the company acquired Broadllyne Technologies Ltd, a Mumbai-based application services provider in the education sector. Glodyne has recently signed an agreement with the government of Maharastra for executing a turnkey technology infrastructure management project as part of the implementation of National Rural Employment Guarantee Scheme (NREGS) in the state. The project will be completed over a period of 5 years on BOOT (build, own, operate and transfer) basis.  DecisionOne too acquired a company last year in California that offers technical support and maintenance services to OEM customers across North America.


Leave Your Comment
IT Firm Glodyne To Acquire DecisionOne Inc For $104M

IT Firm Glodyne To Acquire DecisionOne Inc For $104M

TEAM VCC 8 years ago
Glodyne Technoserve Ltd, a BSE-listed, Mumbai-based technology services firm, is...
Glodyne Acquires Venture-Backed Comat Technologies

Glodyne Acquires Venture-Backed Comat Technologies

TEAM VCC 7 years ago
Glodyne Technoserve Ltd, a Mumbai-based technology services firm, has acquired...
TeamLease to acquire 40% stake in ed-tech startup Schoolguru

TeamLease to acquire 40% stake in ed-tech startup Schoolguru

Dearton Thomas Hector 1 month ago
Staffing firm TeamLease Services Ltd will acquire close to 40% stake in Mumbai...
No Comments

Is Glodyne Technoserve Buying US Firm DecisionOne Inc?

Powered by WordPress.com VIP