Ness Tech acquires Innova for $25 million

Israel-based Ness Technologies has acquired Innova Solutions, a Santa Clara and Hyderabad-based IT services and solutions company for $25 million.

The acquisition will enable Ness to get a foothold on the Banking Financial Services and Insurance (BFSI) segment and extend services to the European and Asia-Pacific markets.

Innova's delivery centre at Hyderabad will become Ness' third delivery centre in India and will compliment its existing delivery centres in Bangalore and Mumbai, the company said in a release here today.

After the completion of the acquisition, Innova's name will be changed to Ness Financial and Business Innovation Services.

Ness intends to retain its existing management team, including Innova's president and CEO Rajkumar Velagapudi. Velagapudi will continue in his current role, it said.

Innova had posted revenues of over $30 million and has around 700 employees at its Hyderabad centre. Avendus Advisors was the investment banker for the deal.

Innova was offering a bouquet of services including software solutions for financial data services, investment management systems and trade operations solutions.

The acquired company's clients include Franklin Templeton, Standard & Poor's, Finaplex, ING Investment Management, Sanofi-Aventis, Kaiser Permanente, Intuit and PayPal among others.