Hitachi Consulting, an international management and technology consulting firm, has acquired venture capital-backed offshore enterprise applications and outsourced product development firm Sierra Atlantic. The deal would give Hitachi a presence in India with offshore development center in Hyderabad along with another in China. It will also bring expanded capabilities to Hitachi's Oracle business. The deal size and other financial details were not disclosed.
Sierra Atlantic has been backed by venture capital firms New Enterprise Associates and Walden International, among others.
The deal also indicates the interest among Japanese majors for assets in the IT services space. Other Japanese firms like NTT Data Corporation have acquired firms with major Indian offshoring locations. NTT Data has acquired Intelligroup and Keane, which were both controlled by PE firms, with major presence in India.
Founded in 1993, Sierra Atlantic is a leader in offshore IT outsourcing with approximately 2400 employees worldwide. It is headquartered in Newark, California with operations in North America, Europe and Asia Pacific. It has approximately 200 customers across the
Fortune 1000 and Small Medium Enterprise (SME) segments in industries like manufacturing, life sciences, financial services and retail industries. The management team of Sierra Atlantic will remain intact post the deal.
"This very strategic acquisition will increase the depth and breadth of our solutions portfolio to further position Hitachi Consulting as a top-tier IT professional services company. Our companies share some very strong synergies because our industry focus and geographies are
well-aligned. Even more significantly, Sierra Atlantic brings very valuable strengths to the table that will allow us to provide our customers with global end-to-end lifecycle support," said Phil Parr,
President and CEO of Texas-based Hitachi Consulting, part of Japan's $96.4 billion Hitachi Ltd.
"Sierra Atlantic is extremely pleased to join a company with the outstanding caliber and deep expertise that Hitachi Consulting holds. With its global brand and rich corporate culture, Hitachi Consulting will make a great home for our employees," said Raju Reddy, Chairman and CEO of Sierra Atlantic.
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