Datamatics Technologies is planning three more global acquisitions in the business process outsourcing sphere to expand its operations.
The company is eyeing the United States and European markets for acquisitions. It is also weighing the option of an initial public offer to fund these acquisitions in addition to $12 million lined up for investments in the next six months.
"We are seriously evaluating the option of an IPO, with an equity dilution of between 10 to 25 per cent," said Lalit Kanodia, chairman, Datamatics.
"If at all we decide to go for an IPO, we would be looking at raising around Rs 150 crore (Rs 1.50 billion)," said Manish Modi, managing director and chief executive officer, Datamatics.
Talking about the future acquisitions, Modi said, "We are looking at two US-based companies and one European company, in data warehousing, content management and financial and accounting sectors. All the three companies are valued between $5-10 million each, therefore, we might go ahead with the IPO, if additional funds are required besides the $12 million already allotted for acquisitions."
The company, on Wednesday, announced the acquisition of a US-based company -- CorPay, a BPO company specialising in finance and accounting services.
"We wanted to extend our presence in US around the West Coast and Mid-West Coast, and CorPay has had a presence in these regions for the last 30 years," Modi said.
The company is targetting a Rs 90 crore (Rs 900 million) turnover through organic growth, for the current financial year, a 50 per cent jump from Rs 60 crore (Rs 600 million) recorded in 2002-03, said Modi.
"The acquisition will augment Datamatics' revenues by around Rs 60 crore," he added. CorPay currently provides outsourcing services for some Fortune 500 companies such as Ford Motors, Chrysler and General Electric in the US.
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