Date:04/01/2005 URL: http://www.thehindubusinessline.com/2005/01/04/stories/2005010402040500.htm

Back Citigroup arm invests in Caritor

Our Bureau

The total IT solutions company is currently evaluating acquisitions in domains that would help the company to extend and consolidate its service offerings.

Bangalore , Jan. 3

IT solutions provider Caritor has reached an agreement with Citigroup Venture Capital International (CVCI) to make an investment in Caritor for joint strategic initiatives.

CVCI is a business unit of Citigroup Alternative Instruments and the investment is expected to play a key role in helping the IT firm expand its global operations.

While company officials refused to comment on the investment value, the announcement ties in with Caritor's earlier plans to bring in a financial institution to increase its marketshare.

According to a company release, the CVCI investment would strengthen the IT firm's capabilities across multiple industry sectors.

"We are delighted to have CVC International act as our investor-partner, which not only reaffirms our market credibility and competitiveness but helps us in rapidly growing our market presence and strengthening our core competencies," Mr Mani Subramanian, Founder, Chairman and CEO of Caritor, was quoted as saying in a release.

"CVC International with its significant insight into the outsourcing space is the right partner for us."

Earlier, Mr Raja Sekharan S.G., Vice President-Sales (Asia Pacific, India, West Asia and Africa), had told Business Line in an interview that a strategic financial institution would be roped in wherein the investor would enable Caritor make overseas acquisitions.

The total IT solutions company is currently evaluating acquisitions in domains that would help the company to extend and consolidate its service offerings.

Target companies include software firms with domain expertise in HR, pharmaceuticals and SAP implementation.

While Caritor's global strategy comprises extending its market reach beyond the US geography, it also plans to strengthen its presence in West Asia and South Africa where the company is starting to see business traction.

For this, Caritor will open development centres both in Johannesburg and Dubai this year, Mr Sekharan said.