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Frontline Tech buys 42% stake in Bangalore firm
By siliconindia staff writer
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Wednesday, 28 January 2004, 20:30 IST
NEW DELHI: The Singapore-based Frontline Technologies is set to pick up 42 per cent stake in ACCEL ICIM Systems and Services.
The Bangalore-based ACCEL is one of India's top 10 technology services companies.
Frontline would invest S$12.9 million into ACCEL ICIM as part of the deal. Of this, S$5.4 million will be used to pick up the shares, and the remaining S$7.5 million will be used to fuel the company's expansion plans.
Talks over the sale of stake have been going on for the last 18 months.
Steve Ting, executive chairman of Frontline Technologies, told Channel NewsAsia that the deal would give the firm immediate access to the booming Indian market.
"... the market is expected to reach $70 billion in 2008.....and we are able to basically leverage upon the low cost and yet highly-skilled talents in the company," he said.
Frontline calculates that ACCEL would contribute between S$1.5 - S$2 million a year to its bottomline.
Both the companies are already jointly bidding for multimillion projects in India and China.
Frontline also has the option to raise its stake in ACCEL ICIM to 57.5 per cent by 2008.