Mastech buys Canadian company InfoTrellis' business for Rs 357 crore

BENGALURU: NYSE-listed Mastech Digital, promoted by Ashok Trivedi and Sunil Wadhwani who had also founded Igate, is acquiring the services division of Canada-based data management and analytics firm InfoTrellis for $55 million (Rs 357 crore). Mastech will pay $35.7 million in cash and the remaining $19.3 million as deferred payment over the next two years contingent on specified earnings targets.

InfoTrellis, which counts Dell, Caterpillar, Lowe's and JC Penney as customers, provides project and consulting services in master data management, data integration, and big data. It has over 200 employees across Toronto and Austin and a global delivery centre in Chennai. Mastech Digi tal will absorb all of InfoTrellis's employees and the two founders, Mahmood Abbas and Sachin Wadhwa, will joining the executive team.

Mastech was traditionally a staffing firm, but is now trying to move into digital transformation services with a focus on data management, analytics, artificial intelligence and implementation of Salesforce .com, SAP HANA and other solutions. Hence, the acquisition of InfoTrellis.

“This is a great anchor investment for us,“ Vivek Gupta, president and CEO of Mastech Digital, told TOI, indicating that more acquisitions will happen to build digital capabilities.

“With InfoTrellis, our revenue from digital will be about 35% of overall revenue. It's 21-22% now,“ Gupta said. Mastech Digital had revenues of $132 million in the financial year ended December 31, 2016.InfoTrellis posted revenues of $22 million for the year ended June 30, 2016.

“Mastech Infotrellis under the Mastech Digital brand will have the ability to crosssell services in data management and analytics to the latter's existing customers, while the latter will sell staffing and digital transformation services to Infotrellis's customers,“ said Gupta.

Abbas, CEO and co-founder of InfoTrellis, said, “I am confident that our strengths in delivering project-based consulting services in data management & analytics, combined with Mastech Digital's scale and proven experience in providing IT staffing and digital transformation services, will create a powerful go-to brand in the industry .“