Mumbai-based Glodyne Technoserve, provider of technology Infrastructure Management Services (IMS) is acquiring US-based DecisionOne Corporation, also an IMS company, for $104 million (Rs 470 crore).
It is to be funded through a combination of debt, equity and cash reserves. Glodyne shall get its equity enhanced through issuance of shares under the preferential allotment route to leading private equity funds, for approximately $23 million.
DecisionOne is one of the leading pure-play technology IMS companies in North America, with revenue of $200 million and Ebitda (earnings before interest, taxes, depreciation and amortisation) margin of 8.1 per cent in CY09. Among its key clients are almost every major information technology manufacturer and service provider, as well as a number of large enterprise customers.
The transaction will significantly enhance Glodyne’s position in the $524-billion global technology IMS opportunity and strengthen its global reach with a robust onsite-remote IMS delivery model, said the company.
“Glodyne will add Fortune 500 clients in its portfolio with the acquisition and will be able to offer a range of IMS services via a Global Excellence Model. In addition, some key alliance relationships will be added and existing ones significantly strengthened. DecisionOne will continue to be led by Chief Executive Officer Neal Bibeau, who will join Glodyne’s executive council,” said Annand Sarnaaik, Chairman & MD, Glodyne.
With this Glodyne expects to significantly strengthen its position in the North American market, with the addition of marquee clients and more than 2,000 highly skilled professionals. The transaction also deepens and broadens the service offering portfolio across many segments.
Glodyne’s 2009-10 revenue touched Rs 721 crore, up 44 per cent from Rs 501 crore in FY09. Net profit for FY10 grew 35 per cent to Rs 105 crore from Rs 77.8 crore last year.