Hitachi Consulting, the outsourcing arm of the Japanese electronics major Hitachi, has acquired the offshore IT outsourcing major Sierra Atlantic, which has a major development centre in Hyderabad, in an all-cash deal.
With Hitachi and Sierra Atlantic proving themselves in Oracle business, the combination is expected to bring together the stronger consulting skills of Hitachi and offshore-managed services of Sierra Atlantic.
Though the value of the deal has not been disclosed, it is expected to be between $200 million and $300 million. Sierra Atlantic, which was earlier delisted from the Bombay Stock Exchange, has been a major player in offshore enterprise applications and outsourced product development.
“The acquisition will significantly expand Hitachi Consulting’s footprint with the addition of offshore global development centres in Hyderabad and Guangzhou, China, along with a best-in-class global delivery model. It will also bring expanded capabilities to Hitachi Consulting’s Oracle business,” Sierra Atlantic said.
Founded in 1993, Sierra Atlantic has about 2,400 employees worldwide. The company’s headquarters is located in Newark, California and it maintains operations in North America, Europe and Asia Pacific.
With around 200 customers across the Fortune 1000 and SME segments, Sierra Atlantic provides a full portfolio of enterprise application implementation and management services to customers in process manufacturing, life sciences, financial services and retail industries.