Datamatics Tech Begins Due Diligence For Acquiring Two BPO Cos

Mumbai: | Updated: Dec 26 2002, 05:30am hrs
Datamatics Technologies is in the midst of a due diligence exercise to acquire two US-based Business Process Outsourcing (BPO) companies for a total consideration of approximately $30 million.

Datamatics Technologies managing director and chief executive officer Manish H Modi said that the funds for these acquisitions will be generated partly through internal accruals (approximately $10 million) and partly from financial institutions and private equity players.

Mr Modi said that the company hopes to finalise at least one of the acquisitions in the next 3-6 months and it could be an all-stock or an all-cash deal or a mix of both.

According to Mr Modi, the company aims to grow at a rate of 100 per cent each year for the next five years.

The companys revenues last year stood at Rs 42.5 crore and Datamatics expects revenues of Rs 70 crore this year.

The company has targeted revenues of Rs 125 crore next year.

For a 100 per cent growth rate, the company is also looking at the inorganic route. With the planned acquisitions, the company is targeting revenues of Rs 170-225 crore next year.

In addition, Datamatics may also consider increasing its stake in Saztec International, the US-based information processing company where Datamatics has already acquired 64 per cent stake.

This again, adds Mr Modi, would depend on the market price and listing requirements.

On the IPO (initial public offer) front, Mr Modi said that the company plans to list next year and is inclined towards listing in the US, mainly because the valuations of the BPO companies in the US are higher than the ones in India.

Datamatics Technologies will be listed first with the rest of the group companies being listed later.