Serco Group Plc , an international services company, said it acquired 60% stake in InfoVision Group, a business process outsourcing company in India, for INR 977 million or GBP 13.3 million in cash.
With this acquisition, Serco said it entered into the domestic Indian BPO market and that it intends to launch its brand, both in BPO and as a service provider. Further, the Group stated that outsourced BPO service market is expected to grow around US$1.8 billion over the next five years.
Christopher Hyman, Chief Executive of Serco, said, that the company's market entry promises excellent opportunities as India is a substantial, fast-growing economy. Also he added, that domestic markets in India are growing fast and over the longer term this acquisition positions the company to provide broader services to the public.
The acquisition values InfoVision with its outstanding net debt of around INR 371 million or £5.1 million, at approximately INR 2.0 billion or £27.2 million. InfoVision's revenue for the full-year 2008 was INR 1.722 billion or £23.5 million.
In addition, Serco said it will acquire the remaining 40% stake of InfoVision in two tranches over the next two years, at a value determined by InfoVision's financial performance in that period.
Source: RTT News