Japan's IT services major NTT Data Corporation is establishing a significant presence in India through the inorganic route. NTT Data has recently acquired 79.7% stake in Singapore-Based Apex Systems Pte Ltd, an IT product developer for the insurance industry, with a significant presence in India. The firm has a global delivery centre in Bangalore called FirstApex Software Technologies Pvt. Ltd with around 200 employees. The deal size was not disclosed.
This fresh deal comes soon after NTT Data acquired Hyderabad-based IT offshoring firm Intelligroup for $199 million in June this year, marking the first large deal by a Japanese firm in the Indian information technology space. Intelligroup is one of the largest enterprise resource planning providers.
The deal with FirstApex gives NTT systems development for the insurance industry. FirstApex provides insurance domain software package solutions that incorporate proprietary technologies, as well as system integration services consisting primarily of the customization of its packaged solutions. It has also expanded into offshore development and maintenance services for systems delivered.
FirstApex was founded in 1981 and is led by group chairman Suresh Prabhu. NTT DATA seeks to expand the NTT DATA Group's insurance domain solutions business to markets abroad, particularly Asia, it said in a release. NTT Data has revenues of $12.3 billion with a net income of $522 million and around 32,000 employees.
According to VCCEdge, there have been 36 inbound mergers & acquisition transactions in the Indian IT services sector worth more than $665 million since the start of 2009.