Infosys to acquire US BPO company for $38 million

BANGALORE: Infosys Technologies on Thursday announced its second acquisition in the BPO space. The company will acquire Atlanta-based McCamish


Systems for $38.2 million (about Rs 180 crore).

Amitabh Chaudhry, CEO of Infosys BPO, told TOI that the deal makes for great synergy as six of the clients that Infosys and McCamish work for are common to both. And all of them are big names in the insurance space. The entire buy-out process will be completed in the next 30 to 40 days. "The deal will have a reflection on our Q4 BPO revenues, adding about $7 to $7.5 million,'' Chaudhry said.

As per the agreement, Infosys will have to pay an additional $20 million to the McCamish sellers if McCamish achieves certain financial targets in the future.

‘‘The acquisition will enhance our capability to deliver end-to-end business solutions for the insurance and financial services industries. It will establish Infosys BPO as a key player in business platform services for those sectors,'' he said.

Most of the big Indian BPO players are rapidly expanding their presence around the globe to tap into new clients, get varied language expertise and offer services from locations that customers are most comfortable with.

Gordon Beckham Jr, CEO of McCamish Systems, said that the combination is expected to enable McCamish to service larger portfolios of transactions for clients and expand into global markets.

McCamish Systems was founded in 1985. The company posted revenues of $38.2 million during calendar 2008. It employs 260 employees at its Atlanta delivery centre.

In October 2007, Infosys had acquired three finance and accounts BPO centres of Royal Philips Electronics in India, Poland and Thailand at a cost of $28 million. The acquisition had also come with a $250-million contract from Philips.

Infosys BPO operates in India, the Czech Republic, China, the Philippines, Poland, Thailand, Mexico and Brazil and employs over 16,400 persons. McCamish gives it a presence in the US now. During fiscal 2008-09, Infosys BPO had revenues of $316.2 million.
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ASHWANI SUHALKA PGDM 2nd Yr