NIIT Tech eyes buyouts amid slump in West
The company is looking to buy IT firms abroad that serve travel, insurance and banking clients.business Updated: May 14, 2012 21:51 IST
Having seen 28% growth in top line at Rs 1,576 crore for 2011-12, the software services company NIIT Technologies looks to acquire small IT firms in Europe and North America to enhance its off-shore business.
Arvind Thakur, CEO, NIIT Technologies told Hindustan Times that the company is looking to buy IT firms abroad that serve travel and insurance clients. NIIT had acquired a Spanish IT firm Proyecta Sistemas in August last year.
The company had also acquired Germany-based SofTec and UK-based Room Solutions. The company has Rs 290 crore cash surplus and will arrange debt, if required, to fund its future acquisitions.
“We had grown 28% last year and 35% in the year before that. This year too we will grow faster than the industry,” said Thakur.
He said that while travel and banking, financial services and insurance (BFSI) sectors remain main revenue streams, the company sees a steady rise in business from governments, particularly in the Asian region.
“In FY11, e-governance business contributed just 4% of the total revenue. It jumped to 7% last year and this year it will contribute 10%,” he said.
NIIT bets on its various IT integration and automation packages for police forces and e-procurement. About hiring Thakur said, “Every quarter we keep adding 250-300 people. Last year we hired 1,300 people. This year it could be more or less the same.”