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AppLabs acquires IS Integration, Reddi to be CEO
By siliconindia
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Wednesday, 20 September 2006, 19:30 IST
Mumbai: AppLabs Technologies announced its acquisition of IS Integration, the leading UK based IT and business solutions testing consultancy for $37million (
170 crore), some of which is contingent on future profits. This news follows the June 2006 announcement that AppLabs has received $10 million in funding from Sequoia Capital India.
Together, the merged businesses will create the largest global provider of testing consultancy, with a combined staff base of approximately 1,500 employees and a forecasted $75 million revenue and $8 million profit this fiscal year ending in March 2007. The transaction will be partly funded by UTI Bank, Singapore.
Under the scope of the AppLabs-IS Integration agreement all offices of IS Integration will continue to operate as they are and all staff will remain employed in the UK based company. IS Integration will effectively form the European arm of AppLabs. The company will continue to operate as IS Integration for the next 6 months, thereafter it will operate under the name AppLabs.
AppLabs is a US-based company with wide-ranging operations, predominantly in product performance and security testing, in the United States and in India. IS Integrations credentials lie in the European enterprise testing space. The joining of the two operations will yield numerous benefits for the new AppLabs to include: increased market share; a global footprint; broader vertical market expertise; improved resources - in terms of both training and R&D - and additional relationships with partners and testing tool providers.
The acquisition results in the development of a strengthened management team. Sashi Reddi, CEO of AppLabs will continue as CEO of the newly merged entity. Adam Ripley, co-Managing Director of IS Integration will take up the position of Senior VP of Marketing for AppLabs and Clive Grummett, co-Managing Director of IS Integration will take up the position as Senior VP of AppLabs for Europe . Gary Davies, currently Business Development Director at IS Integration, will assume responsibility for worldwide strategic alliances.
Reddi, Founder and CEO AppLabs, commented on the acquisition: We are delighted to make this significant announcement at a time when the testing market is showing unprecedented growth. The acquisition positions AppLabs well to continue to enjoy rapid growth in this market, whilst offering our clients a broader range of services on a global basis.
The merged entity will immediately employ over 1,500 people on three continents. Headquartered in Philadelphia, PA, USA, AppLabs employs 80 people in the U.S, almost 1100 in Hyderabad, India and 300 are based across client sites in the UK. AppLabs has announced its aim to employ an additional 600 professionals by the year-end to give a total staff base of over 2,000. AppLabs is looking to grow its operations in its current countries of presence, but also to expand globally, to include a pan-European presence.
170 crore), some of which is contingent on future profits. This news follows the June 2006 announcement that AppLabs has received $10 million in funding from Sequoia Capital India.
Together, the merged businesses will create the largest global provider of testing consultancy, with a combined staff base of approximately 1,500 employees and a forecasted $75 million revenue and $8 million profit this fiscal year ending in March 2007. The transaction will be partly funded by UTI Bank, Singapore.
Under the scope of the AppLabs-IS Integration agreement all offices of IS Integration will continue to operate as they are and all staff will remain employed in the UK based company. IS Integration will effectively form the European arm of AppLabs. The company will continue to operate as IS Integration for the next 6 months, thereafter it will operate under the name AppLabs.
AppLabs is a US-based company with wide-ranging operations, predominantly in product performance and security testing, in the United States and in India. IS Integrations credentials lie in the European enterprise testing space. The joining of the two operations will yield numerous benefits for the new AppLabs to include: increased market share; a global footprint; broader vertical market expertise; improved resources - in terms of both training and R&D - and additional relationships with partners and testing tool providers.
The acquisition results in the development of a strengthened management team. Sashi Reddi, CEO of AppLabs will continue as CEO of the newly merged entity. Adam Ripley, co-Managing Director of IS Integration will take up the position of Senior VP of Marketing for AppLabs and Clive Grummett, co-Managing Director of IS Integration will take up the position as Senior VP of AppLabs for Europe . Gary Davies, currently Business Development Director at IS Integration, will assume responsibility for worldwide strategic alliances.
Reddi, Founder and CEO AppLabs, commented on the acquisition: We are delighted to make this significant announcement at a time when the testing market is showing unprecedented growth. The acquisition positions AppLabs well to continue to enjoy rapid growth in this market, whilst offering our clients a broader range of services on a global basis.
The merged entity will immediately employ over 1,500 people on three continents. Headquartered in Philadelphia, PA, USA, AppLabs employs 80 people in the U.S, almost 1100 in Hyderabad, India and 300 are based across client sites in the UK. AppLabs has announced its aim to employ an additional 600 professionals by the year-end to give a total staff base of over 2,000. AppLabs is looking to grow its operations in its current countries of presence, but also to expand globally, to include a pan-European presence.