Comments
Cigniti Technologies, the Hyderabad-based software testing services firm, has bought the US firm Gallop Solutions for an undisclosed amount.
Though Gallop Solutions is into testing business, it operates in specialised areas such as test automation and developed intellectual property in testing tools.
An industry source has put the deal value at $15 million. The company, however, has refused to comment on the deal size, citing non-disclosure agreement. The combined revenues of the two firms are put at $40 million, with a total workforce of 800. Gallop Solutions employs about 200 with revenues of $9.5 million.
The board of Cigniti has approved the acquisition proposal on Wednesday.
The BSE-listed company plans to raise funds internally to fund the acquisition. The combined entity would be called Cigniti after the completion of integration. The company claims that the acquisition would make the third largest testing company after SQS Systems and Polytest.
Sriram Rajaram, President (Strategy and Corporate Development) of Cigniti, told Business Line that there is no plan to reduce manpower after the acquisition.
“We are going to retain them. In fact, we are planning to hire 300-400 this financial year to meet our growth plans. We are going to set up an office Europe to increase our focus there. The centre would take care of near-shore support and sales,” he said.
He said the Chief Operating Officer is in Europe to finalise the plans on the expansion there.
Currently, about 90 per cent of Cigniti’s revenue comes from the US and Canada. “Apart from Europe, we are also planning to expand our business to Australia and New Zealand and Asia-Pacific
Founded in 2009 by Manohar Reddy and Mahendra Alladi, Gallop Solutions is based in Irving (Texas) with an offshore technology centre in Hyderabad.
On Wednesday, the share of Cigniti moved up by five per cent at Rs 147 on the Bombay Stock Exchange .
kurmanath.kanchi@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.