Mid-sized IT services firm NIIT Technologies Ltd has signed a definitive agreement to acquire 51 per cent stake in business process management (BPM) services company Incessant Technologies Pvt Ltd, it said on Tuesday.
Founded in 2007, Hyderabad-based Incessant has offices in US, UK, Australia and Canada. The firm focuses on enabling its clients to automate and integrate back end systems with a digital front end. It currently has over 300 consultants and has more than 20 clients.
For the year ended March 31, 2014, the company generated revenues of $13.9 million and is estimated to have ended FY15 with top-line of $17 million.
NIIT said the entity is expected to be margin and EPS accretive in FY16.
“Incessant provides us with the capability to be a significant player in the digital integration space with digitisation and automation of business processes for seamless customer experience,” said Sudhir Chaturvedi, COO, NIIT Technologies.
This is the first such strategic M&A deal in almost three years. In September, 2012, it had acquired US-based Sabre Holdings’ Philippines Development Centre.
NIIT Technologies, a leading global IT solutions organisation offers application development and maintenance services, infrastructure management services, IP asset or platform solutions and business process management to organisations in the financial services, travel and transportation, manufacturing/distribution and government sectors. It serves the customers in the US, Europe, Middle East, Asia and Australia.
For the quarter ended March 2015, the firm had a consolidated revenues of Rs 611.2 crore, up 3.9 per cent over the year-ago period. The firm reported net loss of Rs 17.5 crore as against net profit of Rs 61.9 crore in Q4 FY14.
Shares of NIIT Technologies were trading at Rs 380.35 each, down 5.34 per cent on BSE in a weak Mumbai market on Wednesday at 11.47 AM.