AppLabs Technologies, a global software testing and development services company, has announced that it has acquired UK based IT and business solutions testing consultancy - IS Integration.
Both are independent test focused companies, with an aim to grow and dominate the test market. IS Integration gives strong financial services and retail domain capability, while AppLabs has specialized services such as performance, security and automated testing.
With the acquisition, AppLabs expects to become the number one provider of testing consultancy in the world, increase its presence in the UK and Europe, apart from its existing footprint in India and the US, and benefit from the high-end test consulting capabilities of IS Integration.
IS Integration has been acquired by AppLabs for an amount of Rs.170 crores. The acquisition has been funded by Sequoia Capital India, UTI Bank and from stock.
Commenting on the effects of the acquisition on Indian enterprises, Sashi Reddi, Founder & CEO AppLabs said, With this acquisition, AppLabs will be able to offer more services to the Indian customers. For example, for assistance in testing Internet trading applications for Indian customers like BSE, AppLabs will be able to provide superior testing services.
The company has customers in verticals ranging from technology vendors, to financial services, retail, logistics, and others. BSE, Reliance and subsidiaries of US companies are some Indian customers of AppLabs.
AppLabs maintains advanced testing facilities in Lindon, Utah in the US and Hyderabad in India, while IS Integration is headquartered in Preston and has centers in Reading and Edinburgh in the UK.
Due to the rapid rise in the software testing market worldwide, amounting to almost $13 billion, the new AppLabs is targeting a 50% increase in revenues and profits going forward, and targeting an operating profit of 20% going forward.
