EXL Service acquires Inductis in cash and stock deal

MUMBAI: EXL Service Holdings, a Gurgaon-based BPO, announced on Thursday that it had acquired Inductis, a strategy and analytics company serving the financial services and insurance industries. According to industry sources, the deal size is in the range of $20-40m, which means the company is valued one-two times its revenues.

Inductis earned $20m revenues in the calendar year ’05. The deal is primarily a stock-based transaction, where Inductis shareholders will now get EXL shares. The cash part of the transaction is quite small. The number of shares that will be held by Inductis shareholders is not known.

Rohit Kapoor, president, EXL said that this is a strategic acquisition to strengthen EXL’s research and analytical vertical. It was started one and half year ago but it was quite small in size.

The company is now focusing on this rapidly-growing market. Inductis has an established team of 250 people. It does research and analytical work in the field of client acquisition, risk reductions, fraud detection and cost optimisation.

Inductis has offices in Gurgaon, New York, New Jersey, and Singapore. Inductis has been growing rapidly and has client base which includes a number of blue chip companies.

The company will become a wholly-owned and independently-branded subsidiary of EXL, focusing on consulting, research and analytics. Post acquisition, Sandeep Tyagi, managing principal and founder, Inductis, will head the research and analytics practise of EXL Service.