Mastek looks at buys in US, UK
Mumbai-based Mastek is laying the groundwork for aggressive growth plans abroad as the company scouts for acquisitions in the US and UK markets, reports Venkatesh Ganesh.business Updated: Feb 13, 2008 22:58 IST
Mumbai-based Mastek is laying the groundwork for aggressive growth plans abroad. As part of this strategy, the company is scouting for acquisitions in the US and UK markets. In a bid to strengthen and grow its operations in the UK, the company has appointed Steve Williams as director of business development who will report to Brian Please, Director of Mastek’s Insurance Practice.
Williams will spearhead Mastek’s drive to grow new revenue in chosen markets within the UK Financial Services sector. The company is eyeing companies with revenues of $20-30 million that have expertise in insurance-related domains such as insurance policy administration.
Speaking to Hindustan Times, Sudhakar Ram, CEO, Mastek said that they are eying mid-sized companies who have customers and domain expertrise in the insurance sector and will look to acquire them by June.
He added: “Mastek has shortlisted about 10 companies and we are in early round of talks with them.”
In the recently, announced quarterly results Mastek’s profits posted Rs 215.9 crore compared to Rs 184.7 crore in the similar quarter last year, a growth of 17 per cent. Company officials say that viewing the scenario in the US, this is the right time to make acquisitions in specialised verticals such as insurance. “Discretionary or additional spends in the insurance sector will go up in the next year as companies continue to cut costs,” Ram said. Mastek gets in excess of 60 per cent from the UK market.
As per the recent quarter, the UK operations contributed Rs 138.7 crore in revenues, amounting to 66 per cent of overall revenues.
The company employs about 4,000 people across all its locations.