Infinite Computer to invest $60 mn for acquisitions

Bangalore-based Infinite Computer Solutions with a turnover of $104 million (Rs 457 crore) has chalked out an aggressive path for itself. To start with, the privately held company is looking for acquisitions in US, Europe and China and has earmarked about $60-70 million investment for the same.

With almost 91 per cent of capital still controlled by the founder members and some select employees, it feels that raising funds for acquisitions should not be a problem. "We are looking for companies with revenues of $16-20 million. The funds for which can be raised by private equity and we are also evaluating the launch of an IPO," said Upinder Zutshi, chief executive officer.

Over 40 per cent of its revenue comes from the Telco segment, and hence it plans to acquire a company ""- either in the US or Europe"" that will allow them to provide front-end services as well as build on skills in the respective vertical.

Whereas the China acquisition is more from strategic point, which will give the company access to the local market and hire local talent. It also plans to leverage this centre in accessing the other neighbouring countries, especially Japan.

With close to 4,000 employees the company has aimed to grow this number to 9,000 and revenues to $300 million by 2009-10 through an organic roadmap. "If the acquisition strategy works out we plan to achieve revenues of $500 million and a total headcount of 12,000 by the end of 2009-10," said Zutshi.

Presently the company has a five development centre"" three in the US and one each in Hyderabad and Bangalore. The Indian centre has close to 2,500 employees. However they plan to expand the operations in Hyderabad and have marked about $7-8 million for the same.

Primarily a IT services company it also ventured into business process outsourcing (BPO) a year back by acquiring a Hyderabad based BPO with 300 employees. "The strategy of the company is to provide end-to-end services. When we approach clients we want to give them integrated offering," says Zutshi. Apart from this it already has opened offices in the UK, Germany and Sweden to increase its Europe focus. "For five years, we have been only focusing on the US market. That also reflects in the revenue with 98 per cent coming from the US," Zutshi said.

Infinite's clientele includes names like Verizon, IBM, GE, AOL, Pitney Bowes, Lehman Brothers, Fiserv among others.

Under its IT services portfolio, the company provides applications development services, product engineering services, infrastructure management and independent validation and certification services.