Qutesys eyeing acquisitions to expand

By siliconindia   |   Tuesday, 22 December 2009, 00:57 IST
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Qutesys eyeing acquisitions to expand
Bangalore: Qutesys India, a Quality and Test Engineering company operating in the ICT (Information and Communication Technology) space from Bangalore, will soon expand its Asia Pacific market through acquisitions. The company is also planning acquisitions in China, Japan, Korea and Malaysia. Qutesys India President Rajendra Menon expressed his interest in engaging in discussions with small and medium test engineering firms operating in Malaysia and China, offering similar services, for acquisitions. "We estimate the deals to be between $2-5 million and if required, Qutesys India will go to market through the venture funding route to raise funds for these acquisitions," he said. Qutesys India Chief Managing Director, Thomass Jacob, who is one of the largest shareholders in the board, has proposed to acquire a 70 percent stake in its Singapore operations and now proposes to make the latter its wholly owned subsidiary. Jacob has not officially confirmed on the amount paid for the acquisition. Industry players estimate the overall test engineering market as a billion dollar industry as against India's market of serving this domain. Qutesys India had later decided to priorities its operations in India. Jacob said, "We now plan to enter in a big way into the Quality, Test Engineering education, and training and certification space by launching our QTDA (Qutesys Training and Development Academy) operations across India focusing to enable more talents locally in India." Qutesys India initiated for its new ICT products testing, qualification and certification practice, "Qutelab", operating from its Bangalore campus, Jacob further added that they have taken this initiative to provide cost effective ICT product's testing, validation and certification as an independent third party testing organization. To fuel these initiatives, we plan to seek private equity of around $5 million. Regarding business in the country, Jacob said that Qutesys India was already servicing a number of U.S.-based companies such as Mphasis, HP. In India and Asia region, many prospective clients are interested in giving business to seek similar offerings from Qutesys inclined their operations as well. Further talking about launching offerings during the times of economic slowdown, Menon said that the company got facilitations ready recently and also said that it would hire new talents for this business unit. Qutesys India now plans to consolidate its operations over the next few years. "An Initial Public Offerings (IPO) is on our radar and we plan to hit the market shortly" Jacob said. "Qutesys in the business of offering consulting, services, solutions, practices and training into a single axiom in Quality and Test Engineering domain was first of its kind in Singapore to serve ICT industry and now Qutesys India would focus more on supporting similar grounds for ISV's, SMB's and other ICT product companies and we assure our leadership paves energy to achieve our goals" said Menon.

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