New Delhi: GlobalLogic, a software products research & development company is close to acquiring a Indian firm, which operates in the domain of product engineering, its global CEO, Peter Harrison told Mint.
Harrison, who is in India currently said that a definitive agreement has been signed with the company and the company “hopes to announced next month.” The company would add around 1,000 people to the company’s existing workforce of around 3,000 people, of which 2,000 are based in India. However, Peter refused to divulge the name of the company or the deal amount.
“GlobalLogic has been strong in the telecom space and in enterprise software segment, the acquisition will strengthen our capabilities for the consumer oriented technology companies like search engines, social networking sites and commerce,” he said.
The company, which operates out of seven delivery centres across four locations, is also looking at doubling its headcount in the country in the next one year to 4,000 people. While 1,000 will come through the acquisition, the rest will be hired organically.
The company is also looking at a new delivery centre in the South in the near future, said Sunil Sigh, managing director, India. While not talking about the financial details of the transaction, Harrison said that the company’s revenues are around 15% of GlobalLogic’s. The company’s revenues are around $140 million, which puts the size of the firm being acquired at $21 million. The company has been planning to list on the New York Stock Exchange (NYSE). “We are embarking upon that journey,” Harrison said talking about the listing but remained noncommittal on the timeline.
Founded in 2000, GlobalLogic is privately held and backed by venture capital funds Sequoia Capital India, NEA and New Atlantic Ventures. GlobalLogic is headquartered in Vienna, Virginia. A listing on the NYSE could mean a exit for its investors.
The company, which operates carries out research and development activities for companies and has a forte in the telecom sector is seeing the R&D spend rebound after a lag for the last couple of years due to the global economic crisis. “I could safely say that at the level it was before the downturn. If we were cautiously optimistic last year we are very optimistic this year,” he said. Harrison said that while R&D spend in US has rebounded, Europe remains a lag, “but that’s more or less offset by the growth in Asia,” he said.