HCL Infosystem to acquire companies in emerging markets
By IANSThursday, October 21, 2010
NEW DELHI - India’s HCL Infosystem Thursday said it is planning to acquire companies worth $50 to $100 million in emerging markets, including Africa, to expand its business.
The company is looking forward to a service acquisition of $50 to $100 million and geographic acquisition of $6 to $10 million, said Chairman Ajai Chowdhry.
The technology, system integration and IT enterprise company Tuesday launched its Middle East and Africa (MEA) operations.
“Africa has great opportunity as labour cost arbitrage do not hit you there,” said Harsh Chitale, chief executive officer.
The African market is expected to grow at a compound annual growth rate (CAGR) of around 12 per cent, according to market intelligence provider IDC.
Chowdhry said the money raised through the sale of shares in the last fiscal year would be utilized to finance acquisitions and creating infrastructure of the existing business.
HCL Infosystems raised about $200 million to expand its operations in India. In July, the company acquired a 60 percent stake in NTS Group, a leading Dubai-based IT services and solutions company. According to market analysts, the size of the deal was estimated to be around $6.5 million.
