New Delhi: Nasdaq-listed IT company iGate today said it is keen to acquire companies in the health care and business process outsourcing space to scale up services.
“We have been looking for acquisition in health care & BPO space as these are the areas in which we are expanding. We would like to acquire a company to get more clients, skilled people and scale up our business,” iGate CEO Phaneesh Murthy told the agency.
The company shares closed $6.81, down 5.15% on Nasdaq on Friday.
Asked about the price the company would consider fair for the proposed acquisitions, he said “we are flexible on price but there are very few alternatives.. Even the companies are not willing to be sold as they know in these times their valuations are low”.
In health care, which is fairly a new business, the company has bagged three clients and its BPO business (iTops), which currently contributes 15% revenue, iGate is expecting that to double to 30% over a couple of years.
iGate derives over 50% of its revenue from financial services vertical, whereas the rest is contributed by media and entertainment, manufacturing and retail.
The California-based company posted a 22% rise in quarterly net profit at $6.1 million for the supported by cost controls but its revenue slumped on a year-on-year basis.
Revenue from continuing operations for the second quarter ended 30 June stood at $46.8 million, compared with $44.8 million in the previous quarter and $56.2 million in the same period last year
The revenue fell by 16.72% on y-o-y basis, however, it grew sequentially.