GlobalLogic, a provider of software product development services, plans to acquire a Bangalore-based captive R&D unit of a US company this month. The target captive centre employs 40-50 professionals and focuses on VoIP infrastructure, the GlobalLogic Chief Executive Officer, Mr Peter Harrison, said.
The move comes close on the heels of the company’s recent acquisition of a captive development centre of Movius Interactive Corporation, a company focusing on messaging, collaboration and interactive mobile media solutions. GlobalLogic had also inked a master service agreement with Movius.
More acquisitions on cards
“We will announce another acquisition this month. We have a pipeline of 15-20 companies that we track in this market, that we have an interest in. We also have the war-chest to do such acquisitions,” he said adding that the company last year had raised $30 million from PE investors for M&A deals.
GlobalLogic has so far announced four acquisitions, three involving captive R&D units of MNCs (Movius, Mantas, and Kewill). In one case, it had taken over a product development firm, the Nagpur-based Lambent.
Mr Harrison pointed out that GlobalLogic’s proposed acquisition would enable to company to not only service the parent (whose captive is being acquired), but also allow it to sell to companies, that want VoIP in their products.
Growth outlook
GlobalLogic is eyeing a growth of 15 per cent in the current financial year against 40 per cent growth in revenue last year. The company has development centres in India, the US, China and Ukraine.
India operations, spread across multiple locations, have close to 1,600-1,700 people on its rolls.
“We expect to hire close to 400 people this year in India. The openings will be in business intelligence, embedded technologies, telecom, video and mobile space,” Mr Harrison said. GlobalLogic has development centres in Noida, Pune, Bangalore and Nagpur.
Source: The Hindu Businessline