IBS plans two acquisitions

Thiruvananthapuram-based International Business Services (IBS), which provides IT solutions to the transportation and logistics sectors, is aiming to acquire two firms in the coming months to enhance its domain expertise.

The privately-held company secured Rs 242 crore from General Atlantic, a US-based global equity investment firm, in July to fund the twin acquisitions.

The company, which made three acquisitions in the last three years, is planning to grow both organically and inorganically.

"We are looking at companies specialising in providing IT services for aircraft engineering and aircraft maintenance and overhaul (MRO) in Europe and the rest of the world. We expect to close the deal within three months," IBS Founder and CMD VK Mathews told Business Standard.

IBS, which had a topline of Rs 200 crore last fiscal, is also looking at companies providing IT solutions to travel logistics.

"We are yet to commence the due diligence of these companies. In the coming months, we expect to complete both acquisitions to enhance our domain expertise. We see a tremendous growth in logistics with the airline industry witnessing a boom," he added.

IBS provides IT products and services to airline passenger services, airline cargo management, airport and airline operations, travel and cruise management and, oil and gas logistics.

According to Mathews, the company posted a compound annual growth rate of 47.5 per cent in the last 10 years. "The acquisitions will help the company in becoming a Rs 1,000-crore entity by 2010," he said.

In 2002, IBS acquired TopAir, a flight management solution, from EDS. In September 2003, it acquired Avient Technologies, a business unit within Honeywell International offering flight operations and solutions for airline ô airport operations.

In March 2006, it acquired the assets of Discovery Travel Systems based in Virginia, USA, a provider of 'Business to Business' travel technology systems to the cruise, tour and vacation travel industry.

IBS, whose clientele include Shell International, Emirates, Cathay Pacific, Nippon Cargo Airlines, WestJet, South African Airways and Royal Caribbean Cruise Lines, receives 35 per cent of its revenues from the US market.