V.Rishi Kumar

Grant Thornton to advise on M&A activity

Hyderabad , May 18

Allied Worldwide Ltd, a UK-based technology solutions provider, is scouting for an Indian acquisition and has roped in consultant Grant Thornton to serve as advisors for its M&A strategy.

The Director of Allied, Mr Raj Singh, told Business Line that the company is planning to invest about $10 million (Rs 45 crore) in India over two years and this would include the acquisition of a company with about 200-250 people.

"We are looking at Indian companies which have a strategic fitment of established delivery capability in certain chosen verticals of banking and financial services, automotive, supply chain and logistics. The acquisition would help grow both the company acquired and also fit into our expansion plans," he said.

The company registered revenues of $25 million and leverages its India development centre that currently hosts about 40 engineers. Majority of the company business is UK-centric. The acquisition would be funded through private equity partners in the UK. "However, we might also like to take the company public in a couple of years", he said.

"If we are able to acquire a listed Indian IT company, we are open to this as well and then we can potentially merge the UK company," he said.

Even in the UK, many technology companies are faced with the challenge of expansion since most of the business is being acquired by large players. "Only some niche service providers are able to carry the day just as we are doing so with special focus on small and medium sized enterprises," he said.

"The investment we are making from an organic perspective is with regard to strengthening the capability in offering business solutions and managed infrastructure services capability. The Indian operations have provided us with an efficient delivery capability for our customers located globally," he said.

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