Oracle to acquire Hexaware's PeopleSoft center

NEW DELHI: Hexaware Technologies Ltd has announced that Oracle has exercised its option to acquire the Bangalore-based India Service Center (ISC) of PeopleSoft on BOT (Build Operate and Transfer) basis from the company.






PeopleSoft was acquired by Oracle in January 2005. Hexaware had entered into the BOT agreement with PeopleSoft in April 2003 and the transfer is expected to take place in late October. According to the company, Hexaware established the ISC to focus on support and development of new releases, new development and end-client implementation services of PeopleSoft enterprise solutions, for PeopleSoft and its customers worldwide.





After the integration, ISC at Whitefield, Bangalore and the employees hired for the center will become employees of Oracle. During the last fiscal year, ISC contributed to 12.2 percent of Hexaware's total revenue.





According to Hexaware, it would continue its relationship with Oracle as a services partner and will continue to grow its direct PeopleSoft and Oracle services practice. This transfer does not affect in any way the current size and projected growth of its core PeopleSoft Services Practice.





The entire leadership and technical staff of the company's core PeopleSoft practice continue to be part of it, which has over 750 professionals (outside of ISC) for providing expertise in PeopleSoft products to more than 35 customers, said Hexaware. The Company has the largest number of PeopleSoft certified consultants in India, it added.





Speaking on the occasion, vice chairman and CEO of Hexaware Rusi Brij said, "The business outlook continues to be positive and we reiterate the 2005 revenue guidance of $170 million and net profit of $25.2 million."





For the first quarter of 2005, the company posted global revenue of Rs1.64 billion and net profit of Rs 232.35 million.