Global customer experience and technology services provider CSS Corp is exploring making some tuck-in acquisitions to enhance its offerings and reach new customers, its CEO Sunil Mittal said.
A tuck-in acquisition refers to a larger company absorbing another organisation, which is usually smaller in size, and integrating it into its own platform.
CSS Corp, which is looking at going in for an IPO towards the end of 2023 as a standalone business, counts India among its largest talent base with a headcount of about 6,000 employees.
Speaking to PTI, CSS Corp Chief Executive Officer Sunil Mittal said the company is keen on inorganic growth options and is looking at tuck-in acquisitions to enhance its offerings and get to new customers.
“We’re looking at companies with revenues of anywhere between USD 30 to 80 million in terms of revenue ticket size and we’re looking at maybe a couple of them, tuck-in acquisitions at various service lines. If you look at our strategy in the digital engineering space or in the cloud and data center space or in the customer experience space, these are the three focus areas,” he explained.
Mittal said these acquisitions should either build competency for CSS Corp or help it get exposure to a newer sector like healthcare.
“We are not looking at acquisitions just to increase our revenue or margins. Our organic growth is already very industry-leading…the focus (for acquisitions) is in terms of can we create another engine of growth, which gives us more capability and/or exposure to new sectors,” he added.
Mittal said e-commerce will also be an area of focus.
“The other sector that we want to focus on is this whole e-commerce, internet-based business model companies, SaaS. That’s where the future is. We want to get exposure to sectors which are growing, and which are the future,” he added.
The company is looking at hiring about 1,300 people in India from various campuses in the coming year, in line with the strong growth momentum being experienced by it. Out of its 10,000 employee base, around 6,000 are in India.
In February this year, Capital Square Partners (CSP) – a Singapore-based private equity Fund Manager and Startek’s majority shareholder – had acquired a controlling stake in CSS.
At that time, Startek – which competes with CSS Corp – had said it has participated in this transaction by contributing total USD 30 million in a limited partnership managed by CSP to acquire both an indirect beneficial interest of approximately 26 per cent in CSS, as well as an option to acquire a controlling stake.
CSS Corp grew at 25 per cent in FY21, and expects to do better than that in FY22.
Mittal said the company is well-positioned for growth in the coming years.
“…we have enough bookings and deal wins which makes us confident that we can continue with this momentum in the coming quarters…We will end this year at around a USD 225 million annual run rate,” he said.
Source: Business-Standard