Merging and Acquisition

Merging, implies the reconstruction of a new social identity.
Acquisition, one company taking over controlling interest in another company.

Merging and Acquisition in Indian is growing as if there ir no tomorrow, one of the major outbond deals announced recently was by Wipro; they bought US based Infocrossing for a sum of nearly $600 million, it is a big deal but still it is not the biggest.

By this deal, it helps the Indian software firm to gain a strong fotthold with local presence, but it provides with an added advantage of resourcing. As everybody knows, US doesn't have enough visas to give and it is very difficult for Indian software companies to expand aggressivel. So the meaning of these acquisitions gives Indian companies added advantage of securing existing people from acquired company and also providing Indian people as part of intra company transfers.


According to this report in Information Week, there are lot more deals in pipeline currently, and we should see more acquisitions done by Indian outsourcing companies.

Here is an excerpt from that report:

“Indian companies are sitting on a lot of cash, $500 million to $1 billion,” said Ameet Nivsarkar, VP of research at Nasscom in an interview. Plus, “the valuation of Indian IT companies is high” compared with U.S. companies right now. “This is the right time” to do these large deals,” he said.
While big, the Wipro-InfoCrossing deal isn’t even the largest cross-border outsourcing acquisition this year. In June, Caritor — an application developer based in California, but whose 3,900 employees are predominately in India and whose founder is Indian — acquired U.S. IT services provider Keane in an $854 million deal backed by Citigroup Venture Capital.

“It’s definitely possible” that there will be more of these bigger deals, Nivsarkar said.

Bibliography.

Text: Big acquisitions by Indian software companies. http://trak.in/tags/business/2007/08/24/indian-mergers-acquisitions-outsourcing-offshore/.
Images: http://www.infocrossing.com/images/logo.gif