Synechron acquires Paris consulting firm TeamTrade

MUMBAI: Synechron, a capital markets-focused IT company, has acquired Paris-based consulting and integration specialist TeamTrade for an undisclosed sum. TeamTrade has revenue of about $35 million (approximately Rs 210 crore) and 270 employees.

The combined entity will have revenue of over $285 million a year. Synechron has over 5,500 employees and offices in over 12 countries, though India is its main delivery location.

“This acquisition takes us close to $300 million in revenue, and with our organic growth, we are fairly bullish that we will reach our $500 million target in the next 24 months,“ Faisal Husain, CEO of Synechron, told ET.

Husain declined to divulge the cost of the acquisition but said it was funded through internal accruals. Further acquisitions could also be looked at, he said.

Before the acquisition, Synechron derived about 5% of its revenue from Europe. With the addition of TeamTrade, Europe will contribute about 20% of the company's revenue.

“They have clients such as BNP Paribas, Societe Generale and Credit Agricole and there is clear separation among our clients and theirs, so there is a significant opportunity to cross-sell,“ Husain added.

Synechron was founded in 2001 by Husain, Tanveer Saulat and Zia Bhutta. Husain worked at Dun & Bradstreet and Merrill Lynch before setting up Synechron, which is privately-fund ed, at a time when peers in the field have been bought out for big bucks.

In 2011, Genpact acquired capital markets-focused Headstrong for $550 million.

“We think that we would rather be buyers than sellers. And even if we go public, it will be at a time that we choose because we don't have external investors putting any pressure. So, whether we list in the US or in India, that will be a decision that we will take when we are ready,“ Husain said.