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Friday, Nov 13, 2009
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Business Daily from THE HINDU group of publications Friday, Nov 13, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Outsourcing Info-Tech - Mergers & Acquisitions
McCamish Systems is a business process solutions provider to the insurance and financial services sector An additional $20 million is payable to the sellers if McCamish Systems achieves certain financial targets Infosys to gain 39 clients Our Bureau Bangalore, Nov. 12 Infosys BPO, the business process outsourcing arm of Infosys Technologies, has agreed to buy all of the outstanding interests of Atlanta, Georgia-based McCamish Systems LLC, a business process solutions provider to the US insurance and financial services sector. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets. The deal is expected to be completed later this year. The acquisition would contribute to Infosys’s revenue latest by the beginning of January 2010, said Mr Amitabh Chaudhry, CEO and Managing Director, Infosys BPO. “We expect $7-8 million additional revenue initially, and then we will see how it goes,” he added. McCamish Systems, which provides solutions on its proprietary VPAS, PMACS and Deferral+ platforms, would enhance Infosys’s capability to deliver end-to-end business solutions to the BFSI (banking, financial services and insurance) sector. VPAS supports both traditional and non-traditional life insurance and annuities. McCamish also offers integrated sales and administration support solutions that are 409A-compliant to the retirement and financial services industries. For the year ended December 31 2008, McCamish Systems reported revenue of $38.2 million. The company employs about 260 people. Mr Chaudhry said the main motive for the acquisition was to get possession of the platforms. However, Infosys would also gain 39 clients, and an onsite delivery centre to service its clients, he said. Moreover, the deal fits in very well with the company’s platform strategy, he added. Including the new platforms, Infosys BPO now has six platforms. There is a huge opportunity to scale up the benefits from the acquisition, said Mr Chaudhry. He said the financial strength and capability of Infosys combined with the domain expertise of McCamish would enable them to bag bigger deals from larger clients. “We did not go for this acquisition based on the revenue of McCamish. On the other hand, we were excited by the potential revenue that can be generated once the acquisition is done,” he added. Infosys BPO operates in India, the Czech Republic, China, the Philippines, Poland, Thailand, Mexico and Brazil, and employs over 16,400 persons. It closed FY 2008-09 with revenues of $316.2 million. To aid revenue: Page 10 Transaction-based pricing in favour: Infosys BPO The transforming BPO landscape Infosys sees good scope for Platform BPO More Stories on : Outsourcing | Mergers & Acquisitions | Infosys Technologies Ltd
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