Indian companies made acquisitions in US

Indian companies made acquisitions in US
A joint report, prepared by Ernst & Young and FICCI, shows that during the two consecutive financial years, 2007-08 and 2008-09, Indian companies made 143 acquisitions across various sectors in the US.

In 2007-08 alone, 94 deals were concluded (the value of the deal was disclosed in 55 cases and stood at a total of $4,432 million). The size of the deals was between the range of $0.8 million and $1,005 million.

In 2008-09, Indian companies were involved in 49 US-bound acquisitions. Of these, deal values were disclosed in 24 cases and their value totaled $960 million. The sizes of the deals were in the range of $0.70 million and $172 million.

2) 3i Infotech buys Regulus Group

Acquirer - 3i Infotech Ltd
Target - Regulus Group Llc
Date - April 2008
Deal Value (USD Million) - 80

Global information technology company 3i Infotech in April 2008 announced the acquisition of US-based Regulus Group and its subsidiaries, an independent remittance and document processing services provider. The cost of acquisition was $80 million with an additional consideration of up to $20 million which was slated to be linked to performance parameters.

3) Accentia Technologies acquires DenMed Transcription

Acquirer - Accentia Technologies Ltd
Target - DenMed Transcription Service
Date - December 2007
Deal Value (USD Million) - 66

Accentia Technologies acquired Oregon-based medical transcription services provider DenMed Transcription. DenMed Transcription was acquired for $66 million.

4) Accentia Technologies buys GSR Physicians Billing/GSR Systems

Acquirer - Accentia Technologies Ltd
Target - GSR Physicians Billing Inc/ GSR Systems
Date - July 2007
Deal Value (USD Million) - 63

Mumbai-Based business process outsourcing company Accentia Technologies acquired US-based healthcare BPO companies. It bought Florida-based GSR Physician Billing Inc and GSR Systems Inc and Oregon-based medical transcription services provider DenMed Inc in cash-cum-stock deals.

5) Mascon Global buys Jass & Associates Inc/SDG Corporation

Acquirer - Mascon Global Ltd
Target - Jass & Associated Inc/SDG Corporation
Date - March 2008
Deal Value (USD Million) - 55

IT services provider Mascon Global acquired two US-based companies for $55 million. The board of directors approved the acquisition of Jass & Associates Inc and SDG Corporation for a consideration of $55 million, of which $35 million was paid in cash and the remaining through issue of global depository receipts (GDRs).
Source - ET

The study shows that IT&ITeS, consumer products, pharmaceutical and manufacturing are the key sectors where companies are active in outbound acquisitions. However, the IT&ITeS sector is the sector where a majority of the deals took place. The IT&ITeS sector, in fact, accounted for 50% of the total number of deals in 2007- 08 and 40% of the total number of deals in 2008-09.

Here we take a look at the top five deals in the IT&ITeS sector in terms of deal value carried out by Indian companies either directly or through their overseas subsidiaries:

1) Wipro acquires Infocrossing Inc

Acquirer - Wipro Ltd
Target - Infocrossing Inc
Date - August 2007
Deal Value (USD Million) - 548

Wipro Technologies, the IT services arm of Wipro Ltd, acquired Infocrossing Inc, a US-based provider of IT infrastructure management, enterprise application and business process outsourcing services. The acquisition of an acknowledged industry leader broadened the data center and mainframe capabilities of Wipro Technologies to uniquely position it in the remote infrastructure management space.

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