Indian IT companies, Tatas’ recent purchase of French firm Alti could be the prelude to a long-awaited European acquisition spree. Experts believe. Europe seems to have become the new favorite destination.
\A number of Indian software firms have made acquisitions in the European Union off late, Notwithstanding Europe’s stringent labour laws and high operating costs.
Besides the Tata, Geometric acquired 3Cap Technologies for 11 million euros in January.
Last year, Infosys acquired Swiss consulting company Lodestone for $350 million, while Cognizant Technology Solutions Corp acquired six small IT services companies that were part of Germany’s C1 Group for an undisclosed sum.
Commenting on the trend, deal tracking firm Mergermarket’s global head of technology, Pamela Barbaglia, said: “EU targets would help Indian companies enhance their R&D, sales and after-sales capabilities. In addition, top tier companies would benefit from a deeper EU presence, which would reduce their dependency on the US.”
Ms Barbaglia further said that “Tata’s recent purchase of France-based Alti on April 8 could be the prelude to a long-awaited European acquisition spree.”
According to leading assurance, tax and advisory firm Grant Thornton India partner of transaction advisory services, Raja Lahiri: “For Indian IT players, US has typically been the largest IT market. However, given the overall growth pressures in the US, Indian IT players are focusing to grow non-US business, specifically Europe business”.
Source – PTI