Indian software firm invests $100m in eSys
By siliconindia   |   Thursday, 14 December 2006, 18:30 IST
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Indian software and services company Teledata Informatics Ltd pumped in $100m into components distributor eSys. The “strategic investment” will arm eSys with a war chest to fund acquisitions as also maintain its current growth. Vikas Goel, chairman and managing director of eSys, who will join the board of directors at Teledata said, “We see it as a strategic infusion which will help the company consolidate its position as the market leader in IT distribution and strengthen its position as a leading PC maker.” In the last six years since its inception, eSys has bolstered revenues from $108m to $2 billion and employs more than 1,100 staff across 30 countries today. The company distributes brands like Western Digital, Samsung and BenQ and also operates PC assembly plants in four countries, including the UAE. Commenting on the rapid growth eSys has notched up, K. Padmanabhan, managing director at Teledata, said: “Their business model is robust, and we see our investment as an opportunity to partner in their’ growth. The synergy between the two companies would accelerate the business levels with tremendous prospects.” Teledata Informatics is a $273m software firm, with a 2,600 strong workforce spread across 15 countries. It provides enterprise-wide solutions for the marine, education, telecom and utility sectors and its total tangible assets— they include ocean-going vessels, education institutions and even a wind power plant in South India—are worth more than $136m. The investment comes at a cheer for eSys as the company lost Seagate from its vendor portfolio around six weeks ago. eSys was Seagate’s biggest global partner — procuring more than eight million hard drives a year from the company — but lost the contract following a dispute over a sales audit.

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