Infinite to acquire US based VAS company

Mobility

Infinite to acquire US based VAS company

Mulls IPO to raise Rs 200 cr, setup new centre at an investment of $6mn

Idhries Ahmad

Thursday, May 01, 2008

NEW DELHI, INDIA: Provider of IT and ITES solutions, with strong focus in telecom domain, Infinite Computer Solutions is closing on a deal with a US company to acquire its product in the telecom value-added space. The deal is valued in the range of $10-15 million and will be company’s second acquisition in the telecom domain following the acquisition of Comnet in September 2007.

The company also plans to raise Rs 200 crore though private equity or Initial Public Offering to fund the deal and company's new initiatives. Among company’s new initiatives is setting up a development centre in Gurgoan or Noida with an investment of $6-$8 million.

Speaking to CIOL, CEO Infinite Computer Solutions, Upinder Zutshi said the acquisition will be finalised in a weeks time and will further bolster company’s footprint in telecom domain.

Zutshi added that Infinite is also looking at an acquisition in the Infrastructure Management space in Europe, though the talks were at a very early stage,

“While telecom VAS deal is all but done, we are in early stages of acquiring company in the Infrastructure Management space”, said Zutshi.

For Infinite, which started of as a pure play IT services player in 2000, this acquisition strengthens company’s strategic focus in telecommunication solution-centric segments as its major and key vertical focus area.

While Comnet acquisition gave company, doorway to target ISV’s and equipment manufacturers in US and Europe, this acquisition will give company’s headway in the transaction based value added services space in same geographies.

Infinite registered $85 million in revenues by March 2008 and 45% of revenues were generated from telecom space. Following the acquisition and organic drivers in place, the company expects to double its revenues from the telecom space by 2010.

The company will be also actively pursuing the inorganic route as part of its global expansion plans and growth strategy expects to double its revenues to 200 mn by 2010.

“We expect 65% our revenues to come from telecom vertical by 2010”, adds Zutshi.

Zutshi said the company plans to go for an Initial Public offering or raise money though private equity to find the deal and companys new initiatives, “We expect to raise close to RS 200 crore though we have not yet finalised whether will be going for an IPO or through private equity route”, says Zutshi.

“The final call will be taken in week’s time”, adds Zutshi.

Zutshi also added the company is also planning to expand its India operations. The company which currently has three centers in Delhi, Chennai and Bangalore will be opening up another centre in Noida or Gurgoan.

“The modalities are being finalized. The centre will be either setup in Gurgoan or Noida and will be set up with an investment of $6-$8 million”, adds Zutshi.

Infinite has achieved sustained growth in revenues in recent years and had consolidated revenues of Rs. 3,180 million (approximately $82 million) in fiscal 2007-08 from a CAGR of more than 46 percent from Rs. 146.16 million in fiscal 2000-01.

The company also plays in healthcare and infrastructure management pace and boasts of Verizon Communications, Oracle, AT&T and GE, Alcatel-Lucent, Tellabs, Sprint-Nextel among others as its clientele.The company’s employee strength increased from 190 in 2000-01 to 2000 in Fiscal 2007-08.

©CIOL Bureau

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