GEnpact plans 2 buys in Europe

As part of its global expansion and customer acquisition strategy, Gurgaon-based outsourcing firm GEnpact is looking to acquire two European companies operating in the financial services and market research space with revenue of around $200 million each within the next two months.

"GEnpact is aggressively trying to scale up business and the two deals are likely to be signed over the next one-two months," sources close to the development said.

The acquisitions will be funded partly by debt and partly by the company's cash reserves, estimated at $60 million.

"For the next 12 months, GEnpact has drawn a comprehensive growth strategy, both organic and inorganic. The aim is to be one of the top 10 global outsourcing players," said GEnpact Chief Executive Officer Pramod Bhasin.

"We have seen tremendous growth in the last nine months. The next phase of growth will be through acquisitions," he added.

GEnpact, which is trying to rapidly increase its presence as a global player, is also adopting an organic growth strategy by scaling up its existing deals.

The company is close to finalising a finance and accounting (F&A) deal in Germany worth $25 million in two weeks. The contract size is expected to be scaled up to $50 million later.

The company has signed 20 new deals in the last nine months and has booked orders in excess of $500 million till now. The company is also scaling up its existing deal with Nissan from the existing level of $25 million to around $50-60 million. Recently, Nissan signed a deal with GEnpact to outsource its F&A, customer and procurement services.

GEnpact, with a strong presence in the financial services sector, is also planning to enter other segments. "The firm will foray into newer verticals like health care and telecom in the coming months," Bhasin said.