AppLabs to buy US software testing co

CIOL Bureau
New Update

HYDERABAD: Philadelphia based AppLabs is planning to acquire a US based software testing company by the end of September 2004. The company officials declined to name the US company as the deal is still in the negotiation stage. AppLabs, with a global delivery center based in Hyderabad, is planning to invest $7 million - $10 million for acquiring the required infrastructure.

With the acquisition, the software testing/quality assurance company said it has posted revenues of $10 million during the first quarter ending June 2004 aims to double its revenue to $20 million by the end of this fiscal.

Giving the rationale behind the acquisition, AppLabs CEO, Sashi Reddi said, "Particularly for performance testing the most challenging module in testing areas needs larger infrastructure that requires huge investments. So getting aligned with a company that already has the needful will help reduce the costs".

Reddi also claims that the acquisition would improve the present positioning of the company in the international market from the current 20 to one of the top five in the global scenario.

While testing being one of the focus areas, Reddi foresees a huge demand and growth for the animation sector. "This is a totally unexplored area in India. While there are two primary areas - 2D and 3D, there's no scope for an entry in 2D since there are major players like Korea in the market who have benchmarked themselves.

3D is slowly taking off and India can grow enormously in this area given proper manpower and computing technology some years down the line," he elaborated.

Reddi also informed that the company plans to invest Rs 20 crore in the next two years in the animation sector. "We are aggressively targeting the global market in animation business and in the next three to four years, we hope to prove our skill set in 3D," he said.

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