Quatrro eyes more acquisitions in the US
After settling with small ticket acquisitions of less than $50 million in terms of transaction value, Gurgaon based Quatrro BPO Solutions is close to strike another acquisition for over $100 million.
The company is advance stage of due diligence with three companies and expected to close the deal very shortly, sources close to the transaction said.
Out of the three companies, one company is of reasonably large size and negotiations are at an advanced stage, sources said.
On Wednesday, Quatrro had acquired the captive accounting back office of the US based RSM McGladrey. The back office unit with over 1200 people has the revenue of $18 million.
Sources said that the transaction value is in the vicinity of $50 million. When contacted Raman Roy, chairman and managing director of Quatrro, said: “We are always looking at inorganic and organic growth particularly in the developed markets.”
While refusing to divulge any details of potential acquisitions, Roy said: “The company has in excess of $300 million of available cash and capable of raising from resources to fund the transaction in case we manage to strike a suitable deal.”
On the issue of listing the company in future, Roy said that the company was in a midst of an aggressive expansion plan. “This is the time to create value. There is no dearth of funds to meet the expansion plan,” he said
However, on the issue of giving exit option to the existing financial investors which own around 25 per cent stake in the company, Roy said that, “these investors are long term investors and have a long term view of 3 to 5 years. They are not in a hurry and in fact some of the them have given enormous support to finance these transaction,” he added.
Unlike the previous deal (Quatrro had acquired PFG Mortgage in the US with $10 million revenues), the company has decided to retain the top management of McGladrey. “This would give a strong management foothold in the US, which will be leveraged in Indian market also,” Roy said.