IT company Hexaware Technologies said on Thursday it has earmarked an investment of about $40 million to acquire firms in the services segment in Europe.

"We are looking at acquisitions in the services segment in Europe. This will be mainly in ERP, business intelligence, BFSI and transportation verticals," company Chairman Atul Nishar told reporters on Thursday.

Hexaware's liquidity stands at around $70 million and hence the acquisition, expected to be sealed this year, would be executed through internal accruals, Nishar said.

"There will be no dilution of equity this year," he added. Hexaware is scouting for firms in geographies where it needs to build its market, besides those that offer cross-selling and off-shoreability.

"It will be in a segment where we need to augment our technology," a top company official added.

Within India, the company would be investing Rs 170 crore (Rs 1.7 billion) at its Chennai campus, mainly for human resource development and physical infrastructure.

An additional Rs 20-30 crore (Rs 200 to Rs 300 million) has been earmarked for its other centres. The Pune campus of the company, for which it had acquired 25 acre of land, is slated to be operational within the next 24 months.

The campus would be mainly for the company's software services and BPO businesses.