Core Projects ups stake in US-based ECS by 24%

IT solutions firm Core Projects & Technologies (CPTL) has increased its holding in ECS by another 24 per cent, for an undisclosed sum. CPTL had earlier acquired 76 per cent stake in the US-based company in December 2005.

ECS operates in the education vertical and provides products and services to business intelligence and e-governance companies in the US.

Confirming this, CPTL Director Achyut Godbole told Business Standard that the acquisition would strengthen Core's presence in the education vertical in the US, apart from enabling it to strengthen its corporate and brand image.

The company intends to have more work offshore, which will help the company to have significant synergies and cost savings. The ECS buyout will help Core integrate all its activities in the US with those in India, he said.

Meanwhile, the company is also in the process of merging STS, a company which it acquired in February this year.

The merger will help Core reinforce its offshore work and garner additional business from the existing clients of both companies.

The merged entity will offer comprehensive recruitment services from its offshore centre in Mumbai to clients in the US. This will help the company reduce recruitment costs, as well.