Incessant Technologies Pvt. Ltd, a subsidiary of software services provider NIIT Technologies Ltd, has agreed to acquire a 55% stake in US-based business process management firm RuleTek LLC for an undisclosed amount.
The acquisition will help Hyderabad-based enterprise BPM services provider Incessant expand its footprint in North America and strengthen its digital integration capabilities, NIIT Technologies said in a stock-exchange filing.
This is NIIT Technologies’ first acquisition in two years since it acquired a 51% stake in Incessant for Rs 135 crore in May 2015.
The deal comes at a time when a several Indian software services companies, including big firms such as HCL Technologies and Wipro, have snapped up US information technology and business process management firms in the wake of US President Donald Trump’s protectionist rhetoric and tightening of visa rules.
RuleTek, a BPM architecture services company, was founded by enterprise system architects Korby Wright and Mark Covrig. The Idaho, US-based company has 65 employees. In 2016-17, the company’s revenue was $6.47 million.
RuleTek has developed products for companies in the banking, financial services, healthcare and manufacturing sectors, its website shows.
“RuleTek is a perfect match for us, offering substantial synergies to accelerate our growth in the North American market,” said Vijay Madduri, CEO at Incessant.
NIIT Technologies CEO Arvind Thakur said the deal enhances the company’s “near-shore capabilities” in line with its intent to service its US clients.
Incessant’s focus sectors are financial services, insurance, travel, government and manufacturing. It operates in the UK, Australia, Canada and Ireland. In 2015-16, it made a profit of Rs 12.82 crore. This is 4.5% of its parent’s total profit.
NIIT Technologies is a global IT services provider with customers in America, Europe, Asia and Australia. It services clients in travel and transportation, banking and financial services, insurance, manufacturing and media verticals.