Prithvi Info to wrap up 4 US buyouts by Dec

Hyderabad-based technology solutions provider, Prithvi Information Solutions Limited (PISL), is planning to close four acquisition deals in the US by December this year, for an aggregate consideration of $40-50 million (around Rs 180-220 crore).

"We have already identified seven boutique companies in the US and zeroed in on four. We are currently in the process of doing due diligence, and the first acquisition would be announced in the next three to four months. We are hopeful of wrapping up the other three by December this year," Madhavi Vuppalapati, founder and chairperson of PISL, told Business Standard.

The companies that PISL is acquiring are into banking and finance, healthcare, telecom, e-governance, KPO and data analytics verticals. These will have their marketing base in the US and facilities for operations in India.

Madhavi said the acquisitions would help Prithvi in making a transition from a project-based company to a strategic relationship-based company.

PISL had, in 2006, allotted zero-coupon foreign convertible currency bonds (FCCBs) equivalent to $50 million to Europe-based Lehman Brothers International, and announced that these funds would be utilised for the purpose of acquisitions abroad.

PISL is also in the process of setting up its offshore development centre (ODC) in Hyderabad at an investment of Rs 30 crore.

According to Madhavi, the company has acquired two acres in the upmarket Banjara Hills for the ODC. "Construction work on the centre is under way and we hope to fully occupy the facility by September this year," she said.

The 2.5-lakh sft ODC will house 3,000 workstations. At present, 500 professionals are working at the centre, and the company plans to scale this up to 1,500 by March 2008.

"We have also leased a 12,000-sft facility from IIIT at Gachibowli on the outskirts of Hyderabad recently where we plan to start a centre of excellence (CoE) for data analytics. We will be recruiting around 100 IIIT students for the CoE and ramp up the number to 170 next year," Madhavi said.

PISL registered revenues of around $100 million in the last financial year, and expects a little over $150 million this fiscal.

"Organically, we are looking at a 50 per cent growth in revenues next year. With four acquisitions, we should be garnering revenues to the extent of $250 million next fiscal," she said.