NIIT picks majority stake in London IT firm
India IT major NIIT Technologies has taken yet another global step and announced on Monday the acquisition of a controlling stake in ROOM Solutions.Updated: May 08, 2006 15:28 IST
India IT major NIIT Technologies has taken yet another global step and announced on Monday the acquisition of a controlling stake in ROOM Solutions, a $25 million insurance solutions provider based in London.
The New Delhi-based IT solutions company has also announced plans to set up a new campus in a sprawling 20 acres plot in Noida on the outskirts of the national capital.
"We have acquired 51 percent of ROOM Solutions and the remaining stakes will be acquired over a period of 18 months," Arvind Thakur, the chief executive officer of the company, told reporters in New Delhi.
"We have paid cash for the 51 percent holding and the remaining acquisition will happen over 18 months based on the company's performance," NIIT chairman Rajendra S Pawar said, adding the buyout has been valued at $25 million.
Funds for the transaction have been raised through debts as well as internal accruals and ICICI is the main banker with a credit line of $18 million, said Thakur.
With a staff of 120 members, ROOM Solutions is focused on the commercial insurance market, including IT solutions to the customers of Lloyd's, the largest reinsurance company in Britain.
NIIT already has ventures in Europe, the US, Asia-Pacific and Japan with controlling stakes.
NIIT officials said the first phase of the new campus in Greater Noida is expected to come up in the next 18 months. The campus, which can accommodate 12,000 people, is expected to house 3,000 personnel following the first phase of construction.
First Published: May 08, 2006 15:28 IST