Blue Star Infotech Sells IT Biz To Infogain
Infogain Corp, an IT services company backed by private equity firm ChrysCapital, has acquired the IT business of Blue Star Infotech for Rs 180.80 crore. Blue Star Infotech, which is listed on the Indian stock market, is the IT arm of air-conditioning and commercial refrigeration company Blue Star.
“Blue Star Infotech’s IT assets are an ideal fit for Infogain with the vision of creating a leading new-age digital services platform with combined capabilities in cloud, mobility, SAP, analytics and product engineering. We expect the combined company to grow to $500 million in revenues, through organic and inorganic growth, within the next five years,” Sanjay Kukreja, Managing Director at ChrysCapital said.
The acquisition will expand Infogain’s digital transformation offerings, particularly in the areas of Cloud, mobility, SAP and analytics; adding specialized capabilities in the travel/hospitality, high-tech and healthcare verticals. In addition, the acquisition will strengthen and enhance the leadership position of Infogain in the areas of product engineering and test automation.
Infogain provides customer-facing solutions, processes and applications that lead to a more efficient and streamlined digital customer experience for enterprises in the US, Europe, the Middle East, Asia Pacific and Indian markets. With 20%+ revenue CAGR, Infogain’s growth has outpaced industry growth by more than 50%. The company has more than doubled its revenue over the past four years and continues to see significant traction among existing as well as new clients. This acquisition will enable Infogain to expand its services portfolio to support current customers, strengthen existing retail, insurance and high-tech verticals, and enter into new verticals such as travel and hospitality.
The combined entity will have revenue of over $150 million, close to 4,000 employees and eight delivery locations globally. This acquisition is being announced within weeks following a $63M Investment by ChrysCapital.
“This acquisition is another achievement toward our vision of transforming Infogain into a much larger IT services player delivering innovation and outstanding value to our clients,” notes Kapil Nanda, President and Chief Executive Officer of Infogain, who will continue in his current role until July. “Blue Star Infotech has achieved outstanding success over recent years, and I look forward to working with its high-performance leadership and team to deliver even greater value to clients. I am extremely excited to welcome them to the growing Infogain team,” he added.
Sunil Bhatia, Chief Executive Officer and Managing Director at Blue Star Infotech, will join Infogain’s management team as its CEO designate, and will assume his new responsibilities as CEO of the combined entity on July 1, 2016. At that time, Kapil Nanda will transition to his role as full-time Executive Chairman..
“The IT industry is evolving as never before, and we are excited by the opportunity to offer our clients increased scale of our operations as well as broader capabilities including next-generation technologies,” explains Sunil Bhatia, Chief Executive Officer and Managing Director at Blue Star Infotech. “The culmination of many years of outstanding growth nurtured by our founder Suneel Advani, this acquisition will align BSIL’s IT Business with a larger peer thereby strengthening its position in the industry.”
Cynthia Stoddard, CIO at NetApp (NTAP) and a longstanding client of Infogain, commented, “Infogain’s capabilities, talent pool, and geographic presence will certainly be expanded with the acquisition of Blue Star Infotech. We are excited to continue to involve Infogain in activities around our new offerings such as NetApp Private Storage for Azure and other Cloud environments.”
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