eClerx buy Italian digital services firm for 25 million euros

MUMBAI: Knowledge process outsourcing company eClerx Services said it agreed to buy Italian digital services firm CLX Europe for not more than 25 million euros, as it looks to increase its retail business and expand into Europe.

CLX Europe helps create, manage and deliver media content to support marketing, communication and branding for retail companies. The company, which was owned by private equity firms, reported revenue of 19.4 million euros in 2014, and a profit of 500,000 euros.

Italy, UK and Germany contribute a bulk of the company’s revenue. It has more than 75 active clients including leading UK and European retailers, publishers and luxury goods companies. It employs about 300 people, eClerx said in an analyst presentation.

“The combined companies’ capabilities are highly complementary, and now form a continuous value chain of creative asset development, digital multi-channel production, data management, and analytics and insights,” Rohitash Gupta, chief financial officer of eClerx, said in a filing with the Bombay Stock Exchange.
Eclerx said the deal will add to earnings-per-share and will be paid for through internal accruals.