Mastek to raise $40 mn for buyouts abroad

Offshore outsourcing company and IT giant Mastek is raising $40 million in order to acquire companies with intellectual property rights in the insurance and healthcare space.

Speaking to Business Standard, Sudhakar Ram, chairman and managing director, said, "We are looking at companies in the range of $10-20 million with 100-200 manpower strength for acquisition. As of now, we are in talks with six companies in the US and the UK and hope to acquire two by June."

The company already offers services in the insurance and healthcare sectors. The acquisitions are expected to consolidate the company's expertise and strengthen its presence in the domain areas.

Also, the acquisitions would add to Mastek's customer base.

"With the acquisitions, we would look at a few strong customers. So if we add about ten strong customers in the US and the UK, it should be beneficial," Ram added.

While the company wants to increase its revenue shares from the US and the UK, it is also looking for specific state government-led projects in the domestic market.

In FY07, the company's revenues were Rs 810 crore. It has close to 3,400 employees and has presence in the UK, Japan, South East Asia and the US.

In India, the company has its offshore development centres in Mumbai and Pune, and has recently commissioned a third centre in Chennai which would employ close to 6,000 people.