Indian IT firms target buys of over $1 bn in Europe

Indian IT firms target buys of over $1 bn in Europe
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First Published: Mon, Feb 05 2007. 11 06 PM IST
Updated: Mon, Feb 05 2007. 11 06 PM IST
Indian IT services companies are looking for over $1 billion acquisitons in Europe in 2007, says Avendus, a leading investment banking firm dealing with mergers and acquistions in the IT industry. In 2006, their European acquistions were worth $500 million (Rs2,200 crore).
This year, the focus is on the non-UK countries.
Indian IT service companies have found it difficult to penetrate into non-UK companies due to language and cultural barriers. About 75% of the revenue of Indian IT services companies in Europe came from UK in 2006.
“This year we are expecting acquisitions in countries like Germany and Norway in manufacturing and communications verticals apart from tacit acquisitions in the UK to get specific capabilities in banking and financial services vertical,” said Ranu Vohra, managing director Avendus Advisory Pvt. Ltd.
“Besides, France is another country where we are expecting acquisition in manufacturing vertical,” he added.
IT services market in Europe is expected to grow to $287 billion by 2010 from $217 billion in 2006.
“We are expecting roughly six acquisition deals in the range of $ 100 million to $ 200 million each and and roughly equal number of deals below $ 100 million each by Indian IT services companies in Europe,” said Kaushal Aggarwal, executive vice president, Avendus Advisors. He , however, refused to divulge the identity of the the target companies and their suitors.
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First Published: Mon, Feb 05 2007. 11 06 PM IST
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