Technology infrastructure management services (IMS) provider Glodyne Technoserve (formerly Paradyne Infotech) is closing in on an acquisition in the US.
MUMBAI: Technology infrastructure management services (IMS) provider Glodyne Technoserve (formerly Paradyne Infotech) is closing in on an acquisition in the US.
A banker with a leading investment bank said Glodyne had identified a firm in the technology IMS (IP multimedia subsystem) area and was in the final stage of negotiations.
The deal, in the Rs80-120 crore range, could be sealed in April, he said, adding, it would be funded through a mix of debt and internal accruals.
RSM UCO, a US-based investment bank, is the advisor for Glodyne Technoserve.
Annand Sarnaaik, chairman and managing director, Glodyne Technoserve told DNA Money, “I don’t want to comment on inorganic initiatives at this stage. It is true that the company is looking for an overseas buyout, but nothing has been finalised yet.”
Glodyne had acquired a 100% stake in US-based Front Office Technologies Inc for $3.34 million in November. The Front Office clientele includes American Express Bank, Standard Chartered Bank, Ogilvy and Mather Worldwide, Bartie Bogie Hegarty, Sotheby’s and Alchemy, among others.
It had also acquired another US-based company, LGI, for an all-cash deal of $4.75 million in March 2007.
Besides technology IMS, Glodyne offers technology-led business solutions such as application software services.
The company has added 19 new clients organically and 21 new clients inorganically, taking the total number of active clients to 288 at the end of Q3FY08.
It has a total order book of Rs90 crore for the current quarter.
“We have plans to increase our total headcount to 600 by the end of next fiscal from around 200 now,” Sarnaaik said. Its attrition rate stood at about 11% in the December quarter.
Analyst Sweta Sinha of Emkay Research said in a note to clients on February 1 that robust business tractions will continue for Glodyne. With increasing acceptability of its products and services in the domestic IT industry and incremental traction in the US market through its recent acquisition, the company is poised for robust growth going forward.
Analysts Sanjeev Hota and Atul Pandit of Reliance Money in their research report wrote that significant rupee appreciation could lead to a revision in the company’s earnings guidance. Moreover, curtailed IT spending in the US and India could dampen prospects.
r_mithun@dnaindia.net
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