Two businesses being considered: Indian media reports
Infosys Technologies is said to be running a ruler over two European services suppliers, as potential takeover targets.
According to reports in the Economic Times of India, which today cited people ‘familiar with developments’ at Infosys, Poland’s BCC and part of the Ciber group have been identified as potential acquisitions, though no valuation had been agreed for either of the two firms.
Both companies have specialist interests in sites running SAP software systems.
Infosys failed in its last attempt to buy into the European SAP services sector. Almost six months ago, the Indian services giant tabled a $750 million offer for the UK-based SAP consulting and services firm of Axon, but lost out to its smaller rival HCL Technologies.
Ciber Novasoft is a part of the US-headquartered technology systems integrator Ciber Inc, and has long boasted in-depth know-how of the SAP Retail product.
Last week the Ciber parent said it would sell $25 million worth of new shares of common stock in the company and use the proceeds to pay down its debt, after announcing that its fourth-quarter performance failed to meet its projections.
The unit of Ciber supposedly being targeted by Infosys has an annual revenue of almost $75 million, reports suggest.
Poland-based BCC is a consulting company that covers the full gamut of SAP services from implemention, development and the outsourcing of systems based on the German vendor’s business software.
It is said to have over 200 consultants and annual revenues of $180-200 million. In the past year, BCC grew its revenues by nearly 60% against 2007 of which as much as 40% was attributed to export services.
Infosys certainly has the funds available to acquire the businesses. As of the end of June 2008, it boasted $1.7bn in cash and cash equivalents.
The company is not commenting on the speculation that it could be ready to open the bidding on either or both of the SAP specialists.