GlobalLogic on prowl in India
The company is all set to acquire two product development companies in India for close to $10-15 million each in the next six months.
By Harsimran Singh, TNN |
NEW DELHI: A weakening dollar against rupee has lowered the valuations of Indian IT companies. Banking upon the same, outsourced product development company GlobalLogic has sped up its search for buyouts. The company is all set to acquire two product development companies in India for close to $10-15 million each in the next six months. One of the deals is expected to close in the next two months, the US-based GlobalLogic CEO and MD Peter Harrison told ET on Thursday.
The erstwhile Induslogic (now GlobalLogic) is also aiming at diluting about 20-25% of its equity by listing on Nasdaq within the next 18 months. The company will double its India headcount to 4,000 in the next 12 months and expand to a new location as well. Globally, the company employs 5,000 people, with delivery centres in Russia, Ukraine and the US.
“Currently, we are cash rich and have zero debt. We can fund the two buyouts all by ourselves. We may also raise some debt to fund our initial deals. Healthcare and embedded software are two niche areas we are actively looking for buyouts,” he added.
In all, GlobalLogic is looking at four-five firms for acquisitions. GlobalLogic’s investors (Sequoia and NEA) are also looking at the deals and may fund a part of them. Having India centres in Noida, Pune and Nagpur, GlobalLogic is estimated to be over $100 million in revenues though the management refused to divulge the figures.
The erstwhile Induslogic (now GlobalLogic) is also aiming at diluting about 20-25% of its equity by listing on Nasdaq within the next 18 months. The company will double its India headcount to 4,000 in the next 12 months and expand to a new location as well. Globally, the company employs 5,000 people, with delivery centres in Russia, Ukraine and the US.
“Currently, we are cash rich and have zero debt. We can fund the two buyouts all by ourselves. We may also raise some debt to fund our initial deals. Healthcare and embedded software are two niche areas we are actively looking for buyouts,” he added.
In all, GlobalLogic is looking at four-five firms for acquisitions. GlobalLogic’s investors (Sequoia and NEA) are also looking at the deals and may fund a part of them. Having India centres in Noida, Pune and Nagpur, GlobalLogic is estimated to be over $100 million in revenues though the management refused to divulge the figures.
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