Total Business Comes To India As Teledata (India) Buys A $105-Million e-Sys (Singapore)
- Date: 2007-02-22 - Word Count: 383
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Source: www.business-standard.com
Teledata Informatics, a Chennai, India-based firm has acquired a majority stake in the Singapore-headquartered IT distribution and PC maker, eSys Technologies, by investing $105-million (Rs. 470-crore).
According to a company source, most likely, Teledata and eSys will together invest $20-million (around Rs. 90-crore) in Chandigarh to open a total business off-shoring / outsourcing (TBO) unit, with at least 1,000 employees, over the next six months, says a company source.
For those unfamiliar with what TBO stands for, it is a concept that allows whole businesses to be outsourced and run from low-cost, high-skilled countries. Currently, eSys utilises its Indian and Singapore centres in India and Singapore to conduct its TBO business.
Teledata on its part has since 2004 acquired 27-firms and after the recent acquisition of eSys, it is already in talks with two other European firms for the purpose of making further acquisitions.
Confirming the news of further acquisitions, a Teledata spokesperson said: "The company is in the process of acquiring a marine insurance business company and a software provider for billing in the utilities space." These two firms have received a valuation that is much higher than the recent acquisition of eSys.
"We have invested about $120 million in the company and will be investing additional 50% of the already invested money, in the next three months with an intention of acquiring all the other business of eSys," asserts K. Padmanabhan, Managing Director, Teledata.
eSys's turnover in 2005 was $1.676 billion and a profit margin of $15.5-million. The investment will enable the company capitalise on the synergy between Teledata and eSys.
Padmanabhan, while explaining the synergy between the two companies, stated: "Every year we buy 3,000-4,000 personal computers for several e-governance projects. This year we plan to buy 15,000 PCs. The eSys acquisition will now make these projects cost effective," adds Vikas Goel, eSys Group Chairman and Managing Director, who will be the CEO of Teledata Technologies and the holder of a 49% stake in the company.
Already, eSys has a PC manufacturing unit in Delhi and is in the process of setting up another unit in Himachal Pradesh to produce 1-million units per year with an investment of Rs. 250-crore. "We might shut down the Delhi plant and shift the entire manufacturing capabilities to the new centre," says Goel.
Teledata Informatics, a Chennai, India-based firm has acquired a majority stake in the Singapore-headquartered IT distribution and PC maker, eSys Technologies, by investing $105-million (Rs. 470-crore).
According to a company source, most likely, Teledata and eSys will together invest $20-million (around Rs. 90-crore) in Chandigarh to open a total business off-shoring / outsourcing (TBO) unit, with at least 1,000 employees, over the next six months, says a company source.
For those unfamiliar with what TBO stands for, it is a concept that allows whole businesses to be outsourced and run from low-cost, high-skilled countries. Currently, eSys utilises its Indian and Singapore centres in India and Singapore to conduct its TBO business.
Teledata on its part has since 2004 acquired 27-firms and after the recent acquisition of eSys, it is already in talks with two other European firms for the purpose of making further acquisitions.
Confirming the news of further acquisitions, a Teledata spokesperson said: "The company is in the process of acquiring a marine insurance business company and a software provider for billing in the utilities space." These two firms have received a valuation that is much higher than the recent acquisition of eSys.
"We have invested about $120 million in the company and will be investing additional 50% of the already invested money, in the next three months with an intention of acquiring all the other business of eSys," asserts K. Padmanabhan, Managing Director, Teledata.
eSys's turnover in 2005 was $1.676 billion and a profit margin of $15.5-million. The investment will enable the company capitalise on the synergy between Teledata and eSys.
Padmanabhan, while explaining the synergy between the two companies, stated: "Every year we buy 3,000-4,000 personal computers for several e-governance projects. This year we plan to buy 15,000 PCs. The eSys acquisition will now make these projects cost effective," adds Vikas Goel, eSys Group Chairman and Managing Director, who will be the CEO of Teledata Technologies and the holder of a 49% stake in the company.
Already, eSys has a PC manufacturing unit in Delhi and is in the process of setting up another unit in Himachal Pradesh to produce 1-million units per year with an investment of Rs. 250-crore. "We might shut down the Delhi plant and shift the entire manufacturing capabilities to the new centre," says Goel.
Related Tags: outsourcing, businesses, software development, acquisitions
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