OfficeTiger, Datamatics plan M&As to cash in on BPO boom

By siliconindia staff writer   |   Friday, 22 August 2003, 07:00 Hrs
Printer Print Email Email
While the Chennai-based content outsourcing company OfficeTiger plans to make a $10-million acquisition in the next few months, the Mumbai-based Datamatics Technologies, has already finalised its acquisition target and is expected to close the deal by next week.

MUMBAI: Joseph Sigelman, CEO, OfficeTiger said, "We have reached a critical size and have around 1,000 people in the company now. We are now looking at an acquisition of a US company which will allow us to leapfrog into our next phase of growth."

Sigelman, a US citizen, is the co-founder of OfficeTiger. The company has been funded by venture capitalists based in the UK. OfficeTiger has was set up in 1999 and chose to build its first development centre in Chennai.

OfficeTiger is projecting explosive growth, a substantial chunk of which will come from acquisition. "We should be able to touch close to $ 80 million in the next two year's time and reach $150 m in the next three years, " Sigelman says.

Datamatics, on the other hand, is closing an acquisition of a company in the finance & accounting outsourcing space, next week.

It is acquiring a company generating close to $15 m of revenues for around $9 million. The company is in the process of negotiating the liability of its acquisition target.

The cash paid for the acquisition may come down if Datamatics has to acquire the liabilities along with the company. The acquisition value may go down to $ 7million in that case.

Datamatics is being advised by Ernst & Young, Grant Thornton and PwC on the acquisition.

The reason Datamatics and OfficeTiger are rushing to acquire companies is because outsourcing in their space is expected to boom.

Moreover, some of the companies that they work for, like invesment banks, are setting up their own captive centres in the country.

OfficeTiger has several customers in the investment banking space for whom it does basic and anlaytical reasearch on industries and companies.

The company also does background and documentation research for large deals, mergers and acquisition.

Basically OfficeTiger has three service offerings: professional support services, electronic content services and finance & accounting services. The common thread in all of these is that it involves conversion of content of one form or the other.

OfficeTiger's professional support services division provides mission-critical, real-time services to enhance the communications and decision-support infrastructure of leading global firms. Its electronic content services division focuses on content preparation services for any media format, including printed documents, on-line and the worldwide web. (Source: ET)

Wipro opens third industrial
IT major Wipro Ltd on Thursday opened its centre of excellence for Industrial Internet of Things (..
Google's Gboard gets offline
Google is adding an Artificially Intelligent (AI) offline dictation feature on its Gboard keyb..
Facebook denies cyber attack
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suf..
IBM announces programme
n a bid to recognise the contribution of developers in the open source community, Information ..