Processing .....please wait.. 
The article has been forwarded.... 
Indian IT firms target $1 bn buys in Europe
By siliconindia
|
Tuesday, 06 February 2007, 18:30 IST
MUMBAI: The boomtime for the Indian IT industry is fast sprerading its reach across the rest of the world. According to Avendus, a leading investment banking firm dealing with mergers and acquistions in the IT industry, Indian IT services companies are looking for over $1 billion worth acquisitons in Europe in 2007. Mint, the newly launched business paper reported this today.
In 2006, European acquistions of Indian IT firms were worth $500 million (Rs2,200 crore), with the focus being on UK countries. About 75 percent of the revenue of Indian IT services companies in Europe came from UK in 2006.
Traditionally, Indian IT service firms have found it difficult to penetrate into non-UK companies due to language and cultural barriers. This year we are expecting acquisitions in countries like Germany and Norway in manufacturing and communications verticals apart from tacit acquisitions in the UK to get specific capabilities in banking and financial services vertical, Ranu Vohra, managing director Avendus Advisory Pvt. Ltd told Mint, while adding that his firm was expecting acquisitions in the manufacturing vertical in France.
The European IT services market is expected to grow to $287 billion by 2010 from $217 billion in 2006. We are expecting roughly six acquisition deals in the range of $100 million to $200 million each and and roughly equal number of deals below $100 million each by Indian IT services companies in Europe, Kaushal Aggarwal, executive vice president, Avendus Advisors told Mint. However, he refused to divulgedetails as to who the target companies and their suitors could be.