HYDERABAD,INDIA: Infotech Enterprises America Inc., a subsidiary of Infotech Enterprises Ltd. (IEL) today announced that it has entered into a definitive agreement with Time To Market Inc. (TTM), a software service provider based in San Jose, California.
The deal focuses to acquire the company and all its affiliates.
This agreement marks the entry of Infotech into Hitech industries with design services. The combined entity would provide end-to-end design services to semiconductor, telecom and computing industries, said a press release.
The global delivery organization and processes of IEL are a compelling value proposition for TTM's customers to extend the scale and scope of their relationships.
BVR Mohan Reddy, chairman and managing director of IEL said, "Hitech sector is an important growth market for us. We have reviewed a number of strategic options and decided on TTM. The niche and cutting-edge technical expertise and the strong customer endorsements and relationships led to our decision in favor of TTM.”
“The work they are doing in the 65 nm design process is very impressive. Combined with our processes and reach, we will be able to leverage this acquisition to create a strong momentum in the Hitech markets. Infotech will pursue other organic and inorganic opportunities to address the whole spectrum of the Hitech Industry, " he added.
According to the NASSCOM BAH report on Design Engineering Services, global engineering spend on Hitech design services stood at $ 170 Billion in 2004 and is estimated to reach $ 300 Billion by 2020. The report projects the Hitech domain to be the fastest growing segment of opportunity.
Hitech is also estimated to have the largest engineering spend and is the most open to global engineering processes. The potential in Hitech industry for off shoring is estimated in excess of USD 15 billion by 2020.
Venkata Simhadri, Founder and CEO of TTM said, "We are delighted to be part of the Infotech family. We were very impressed by the clarity of vision and the purposefulness of Mr. Reddy and the Infotech management team.
He added that through their discussion they have recognized the opportunity to leverage the reach of Infotech to rapidly build a global scale. Their employees and customers have endorsed them over this deal.