Indian software firm pumps US$100m into eSys

Components distributor eSys has received a cash injection of US$100m from Indian software company Teledata Informatics Ltd. The “strategic investment” is designed to help eSys maintain its growth and provide it with a war chest to fund acquisitions.

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By  Andrew Seymour Published  December 13, 2006

Components distributor eSys has received a financial injection of US$100m from Indian software and services company Teledata Informatics Ltd. The “strategic investment” is designed to help eSys maintain its growth and provide it with a war chest to fund acquisitions. “We are pleased to close this investment, which will help us continue our growth,” said Vikas Goel, group chairman and managing director at eSys, who will also join the board of directors at Teledata. “We see it as a strategic infusion which will help eSys consolidate its position as the market leader in IT distribution and strengthen its position as a leading PC maker.” eSys claims the investment will allow it to “continue and consolidate the growth” that has seen it develop into one of the largest components wholesalers in the world since its inception six years ago. During that time it has bolstered revenues from US$108m to US$2 billion and now employs more than 1,100 staff across 30 countries. The company — which distributes brands including Western Digital, Samsung and BenQ — also operates PC assembly plants in four countries, including the UAE. K. Padmanabhan, managing director at Teledata, said: “We were very impressed by the growth which eSys achieved in a short span of time. Their business model is robust, and we see our investment as an opportunity to partner in eSys’ growth. The synergy between eSys and Teledata would accelerate the business levels with tremendous prospects.” 2,600-strong Teledata Informatics is a US$273m software firm with operations in 15 countries. It provides enterprise-wide solutions for the marine, education, telecom and utility sectors and boasts total tangible assets worth more than US$136m, including ocean-going vessels, education institutions and even a wind power plant in South India. The investment from Teledata comes less than six weeks after eSys suffered the blow of losing Seagate from its vendor portfolio. eSys was Seagate’s biggest global partner — procuring more than eight million hard drives a year from the company — but lost the contract following a dispute over a sales audit. Since then, eSys has moved to bring its HDD offering back up to full strength by extending a deal with Samsung to include multiple countries.

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