GlobalLogic scouting for 3-4 captive buyouts

New Delhi-based GlobalLogic, a product development services company, is looking at 3-4 captive buyouts besides acquiring individual companies this year. This would cost the company around $40 million (around Rs 165 crore), double the amount it spent last year in acquisitions and captive buys.

The company is planning acquisitions in the embedded software space, which it considers as a high growth area in the mature markets such as the US and Europe. It is also in "final stages" of acquiring captive software development centres in India. Rajul Garg, vice president (corporate development), GlobalLogic, said, "We are looking at acquisitions in the embedded software space and may be in telecom, wireless verticals too.

Acquiring a company that services markets such as Europe and Japan, is quite an attractive proposition to us." The growth plan may also include some high voltage software outsourcing firm acquisitions in either Chennai, Hyderabad or Bangalore within the next four months.

"Typically, we are looking at an organisation that would have revenues in the range of $5-10 million or has headcount of around 100-500 people," added Garg. Targeting a $100 million (around Rs 410 crore) in revenue globally by the end of the current financial year, "the company is looking to expand its India contribution to 15-20 per cent from the current 5-6 per," says Rohit Sharma, director (marketing). Integrating captive software development units of MNCs seem to top the priority charts of GlobalLogic in 2007. "Acquisitions help in greater efficiencies and cost savings for companies. You get a ready pool of trained manpower and a new revenue stream that spins money from day one," says Garg.