AppLabs acquires UK consultancy
Software testing and development services company AppLabs Technologies has acquired IS Integration, a UK-based IT and business solutions testing consultancy, for $37 million (Rs 170 crore).
On conclusion of the acquisition, the merged entity will become one of the largest providers of testing consultancy in the world, employing around 1,500 staff and revenues of $75 million.
"This acquisition positions AppLabs to tap the growing opportunities in testing market, which is pegged at around $13 billion globally. The merger will result in increased market share, global footprint and improved resources, apart from increased customer base," AppLabs CEO Sashi Reddy told reporters here today.
The transaction is partly funded by UTI Bank, Singapore, partly through debt and the remaining through stocks. He, however, did not provide a break up of the funding. At present, the merged company employs over 1,500 people. AppLabs intends to employ an additional 600 professionals by the end of the year, increasing its total staff strength to over 2,000.
IS Integration will result in the formation of an European arm for AppLabs, which at present has only presence in India and the US. The company will continue to operate as IS Integration for the next six months, thereafter it will operate under AppLabs name.
Sashi Reddi will continue as CEO of the new entity. Adam Ripley, co-MD of IS Integration, will become Senior VP, Marketing for AppLabs and Clive Grummett, co-managing director of IS Integration, will take up the position as senior VP, AppLabs, Europe.
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