» Business » Secova acquires US-based UltraLink

Secova acquires US-based UltraLink

May 04, 2006 01:22 IST
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Human resources outsourcing firm Secova eServices Ltd has acquired US-based UltraLink, which will be merged with the company.

Secova is likely to invest about Rs 9 crore in infrastructure and training over the next one year.

Addressing a teleconference meeting from the US, Venkat Tadanki, co-founder and chief executive officer, Secova, said Baring Private Equity Partners, the primary investors at Secova, had bought out shares from Trident and Capz, the investors at UltraLink, for an undisclosed sum.

The merger is a strategic move as both the companies have common focus on serving the customers. The Secova-UltraLink combination will offer a full suite of human resource outsourcing solutions to customers on both the sides, he added.

The merger will enable the combined entity, which is yet to be named, leverage global delivery centres and best processes to deliver an integrated human resources and benefits administration services to customers.

UltraLink, a human resource and benefits management services provider, employs close to 90 people at its office in California, US. Its revenue was in the range of $10-20 million (Rs 45 crore - Rs 89 crore).

Tadanki added that the merger had brought an opportunity to provide additional services to its existing customers and bring new customers to its existing offerings.

"Together, we have about 60 customers, including 15 Fortune 1000 companies, and about 180 employees," he added.

"Going forward, we see opportunities to scale up to a level of becoming a significant player in providing best shore services in HR space," Tadanki said.

The company would be able to offer customised best shore services to mid and large-sized companies (with an employee strength of over 1,000) in the US, he added.

The combined entity's headquarters will be in California, US, with additional centres in New Jersey and Chennai. Venkat Tadanki will be the chief executive officer of combined company.

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