Date:05/03/2005 URL: http://www.thehindubusinessline.com/2005/03/05/stories/2005030501950500.htm

Back Kanbay buys Accurum India

Our Bureau

Mr Venkat Vallabhaneni, CEO, Accurum (left), and Mr Cyprian D. Souza, Managing Director, Kanbay India, at a press conference in Chennai on Friday. — Shaju John

Chennai , March 4

KANBAY International Inc of USA today announced the acquisition of the Accurum India Pvt Ltd, an IT services provider to the capital markets industry.

Accurum India is a part of Accrum Inc of the US, formerly known as Pinnacle Info Solutions.

Accurum India employs 180 people and has an offshore solution centre in Chennai. In 2004, its revenues amounted to $12 million, short of the $16.2 million it had projected last June.

The purchase price consists of an upfront payment of $5 million plus another $7 million contingent upon Accurum achieving certain performance targets.

The $183 million (Rs 820 crore) Kanbay International is also an IT services provider focused on financial services industry. It has a unit in Pune, called Kanbay Software (India) Pvt Ltd.

The company is strong in software and services for banking and insurance, credit cards and credit-related activities. The Managing Director of Kanbay Software (India), Mr Cyprian D'Souza, said at a press conference here today that the only weak area in Kanbay's range had been `capital markets'.

The acquisition of Accurum would fill the gap, he said. Accurum will operate as a wholly-owned subsidiary of Kanbay.

Mr Venkat Vallabhaneni, CEO of Accurum, observed that both Accurum and Kanbay had many "Wall Street clients". Since Accurum's and Kanbay's strengths are "complementary", the combined entity would have a greater depth, he said.