Time To Market acquisition pegged at $9 million
HYDERABAD: Infotech Enterprises, the Hyderabad-based IT consulting major, has entered into a definitive agreement to acquire Time To Market (TTM), a US-based ASIC design and embedded software solutions firm, and all its affiliates.
After the transaction is complete, TTM will become a subsidiary of Infotech’s US arm Infotech Enterprises America Inc.
The Hyderabad company refused to divulge the value of the acquisition, but it is estimated to be $9 million. TTM’s revenues stand at $7.5 million and it has 15-20 active clients. The company has 130 employees — 40 in the US, 80 in its Hyderabad centre and another 10 in Bangalore.
Krishna Bodanapu, senior vice-president, Infotech, said that the acquisition would add about $4.5 million to the company’s topline.
Infotech operates in two key verticals - engineering services and geospatial services. Within engineering, it is the largest independent offshore provider of services with strong presence in verticals such as aerospace and rail. Through the TTM acquisition, it is expected to gain expertise in verticals such as semiconductor, consumer, computing, telecom, medical and industrial automation. Established in 1998, TTM has been focusing on back-end physical design within the ASIC framework for several semiconductor manufacturers.
According to Bodanapu, TTM has expanded in the last two years to include front-end designs in its services. “TTM’s strength in ASIC design complements Infotech’s expertise in FPGA and board design and embedded software development. The combined entity has the capability to provide end-to-end design services to semiconductor, telecom and computing industries,” Bodanapu said.
B V R Mohan Reddy, the chairman and managing director of Infotech, said that the hi-tech sector is an important growth market for the company. “We have reviewed a number of strategic options and decided on TTM. It has niche and cutting-edge technical expertise and strong customer endorsements and relationships, which helped us decide in its favour,” he said.
Reddy added that TTM is doing ‘impressive’ work in the 65 nm design process. “Combined with our processes and reach, we will be able to leverage this acquisition to create a strong momentum in hi-tech markets. Infotech will pursue other organic and inorganic opportunities to address the whole spectrum of the hi-tech industry,” he said.
According to research reports, the global spend on hi-tech design services was $170 billion in 2004 and is estimated to touch $300 billion by 2020. Through such acquisitions, Infotech is gearing up to tap growing opportunities in this space and is eyeing the European market for the next fiscal.
