Advertisment

EDS to acquire RelQ

author-image
CIOL Bureau
Updated On
New Update

BANGALORE: Electronic Data Systems has announced that it has signed a a definitive agreement to acquire Bangalore-based testing firm RelQ Software Private Ltd.

Advertisment

Though the company did not disclose the deal amount, media reports last month claimed that EDS will pay $40 million to buy out RelQ.

EDS plans to fully integrate RelQ into its global testing organization and accelerate the company’s global testing capabilities by offering low cost, high quality applications testing, validation and verification, and quality assurance services. The transaction is expected to close in May 2007.

RelQ’s more than 700 employees in India, the United Kingdom, the United States and France are expected to become a part of EDS’ global testing organization.

Advertisment

RelQ operates primarily in the banking, financial services, telecom and consumer electronics industries.

“Having the ability to test and validate such critical applications is vital to helping clients succeed in today’s economy. This acquisition will help EDS expand our customer base by accelerating and uplifting our software testing capabilities, thereby giving us a significant competitive advantage in the deployment of enterprise applications platforms and services for our clients. It fits with EDS’ ‘zero defect’ approach to applications development and deployment and complements existing on-site and off shore capabilities,” said Charlie Feld, senior executive vice president, Applications Services, EDS

“Software has taken a mission critical role in a large number of business processes, and software testing can play a significant role in identifying and preventing software failures which could jeopardize the goals of a specific IT project,” said Prakash Mutalik, president and chief executive officer, RelQ.

Advertisment

“We are pleased that EDS is acquiring the capabilities and expertise of RelQ and its employees to better serve the needs of our combined client base.”

Key elements of the acquisition would include all of RelQ’s service offerings in the areas of strategic test consulting, functional testing, near-release testing, test automation, post-release testing and extreme testing, said EDS in a statement.

RelQ retained UBS Investment Bank as its exclusive financial advisor on the transaction.

© CyberMedia News

tech-news