Cambridge Solutions eyes acquisitions

By agencies   |   Monday, 28 November 2005, 08:00 Hrs
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BANGALORE: To strengthen its position and to transform it into a billion-dollar company, Cambridge Solutions Ltd is planning to make strategic acquisitions. The company came into existence with the merger of the $75-million services firm Scandent Solutions Corporation and the $200-million BPO firm, Cambridge Services Holdings.

Announcing the company’s future move, Satyen Patel, Vice-Chairman, Cambridge Solutions Ltd, said the company had recently raised $60 million, of which $30 million would be used to fund inorganic growth and the rest to retire high cost debts. ICICI Ventures has picked up close to 10 per cent stake by pumping in $55 million, while the remaining $5 million was raised from the Scandent Group, Mauritius.

The company is targeting revenues of billion dollars in the next three to five years, Patel said. “As a combined entity, we may reach a turnover of $750-800 million on our own, but we have to depend on inorganic growth to meet the rest,” he said.

Refusing to give further details, Patel said, “We are not going to sit idle on the $30-million cash chest. We are looking at almost all the major geographies.” At present the company has a strong presence in healthcare, banking, financial services and insurance and logistics. “The company may include telecom as a potential area for its future growth,” he added.

Post-merger, Cambridge Solutions sees major potential to cross-sell its services to the existing clientele. “We plan to go in for `reverse mining' of the clientele, where we would be cross-selling both IT and BPO services,” Patel said. This implies that the company would sell IT services to the BPO clients of the erstwhile Cambridge and vice versa.

The company offers high-end BPO services such as transaction processing, recently won a three-year $38-million deal from New South Wales Work Authority for processing workers compensation claims. Patel said there were more such deals in the pipeline.

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