ICICI Infotech enters local market with $10 million acquisition
Indian-based financial and IT services player, ICICI Infotech is charging into the region with the acquisition of Insyst Technologies.
Indian-based financial and IT services player, ICICI Infotech is charging into the region with the acquisition of Insyst Technologies. The deal, which is worth approximately $10 million over the next three years, will enable ICICI to leverage on Insyst’s local customer base and market knowledge.
“The deal brings together Insyst’s product development expertise with ICIC Infotech’s established services business,” says Hari Padmanabhan, president & CEO, Insyst.
“ICICI is part of the largest financial house in India and they have some very aggressive growth plans, both for the Middle East and globally,” he adds.
The deal also transports Insyst’s range of products into markets that had previously eluded the local development house. Insyst’s three products — the Orion ERP package, Premia insurance software and its Merlin SMB suite — will all continue to be marketed under the same brand both in the region and internationally.
“We’re currently working with teams to see how we can take these products aboard,” says Padmanabhan. “We’re primarily looking at the US and South East Asia markets.”
The addition of ICICI’s 1400 professionals should also enable the homegrown software house to enhance services to current customers and exploit further opportunities. Up until now services had previously only accounted for 15-to-20% of Insyst’s business, and were primarily seen as a way to enhance its technical skill sets in emerging areas such as e-business.
At the local level, Insyst's company make-up isn’t going to change in the short-term, with Padmanabhan remaining Insyst’s CEO and reporting to the board of ICICI Infotech.
“This will significantly enhance our ability to invest in product development and use technology more effectively in raising our levels of service to our existing customer base and to new customers,” says Padmanabhan.
“Insyst will additionally bring to them a wide range of IT services that ICICI Infotech now provides to its global customers,” he adds.
Insyst's $10 million price tag will depend on the company achieving certain targets over the next three years. Although those targets were not disclosed Padmanabhan is confident they will be reached.
“We will continue on our ambitious performance and growth targets and with the significantly enhanced financial strength brought by ICICI, we will raise our quality and service bar, bringing our customers greater benefits and more cost effective solutions,” predicts Padmanabhan.