iGate Global Takes Over Quintant, Hires Phaneesh Murthy As CEO

Bangalore: | Updated: Jul 31 2003, 05:30am hrs
iGate Global Solutions (IGS), the IT consultancy arm of US-based iGate Corp, has acquired the 51 per cent stake held by GMR Group in Quintant Services Limited, a business services provisioning (BSP) company, for a cash deal of Rs 86.9 crore. IGS has also appointed former Infosys Worldwide sales and marketing head Phaneesh Murthy as CEO of IGS and inducted him to the companys board. Mr Murthy was, till now, a strategic advisor of Quintant.

Addressing a press conference, IGS co-founders Sunil Wadhwani and Ashok Trivedi said the company would acquire the rest of the stakes from GMR Group in due course. Mr Wadhwani said the acquisition will be made after meeting certain conditions.

Following the acquisition, nearly all the 70 odd Quintant staff will become part of IGS. The company will be totally merged with IGS after acquiring the full equity of the GMR Group, Mr Murthy said. Quintant, launched about a couple of months back, had a commitment of an investment of $30 million from the GMR Group. According to Mr Murthy, the group has made its first tranche of investment of $16 million and a second tranche of $8 million is due in August.

The acquisition would help us to offer high value outsourcing services spanning consulting, business process and technology, he added. Acquisition of GMR Groups stake in Quintant would provide IGS access to approximately Rs 68 crore in assets, of which Rs 60 crore is in cash. It also brings to the company Quintants domain expertise in banking, insurance and financial verticals, the Quintant management team, and proprietary tools and frameworks.

On the companys business strategy and expansion Mr Murthy said, My aim would be to build iGate into a gold standard company with key focus on three areasoperational excellence, customer service and corporate governance. With the synergies between iGate Global and Quintant, the focus is to build a world-class company in the IT/BPO space, he added.

iGate Globals recent strategic investments, including business process outsourcing and strategic outsourcing, are part of a larger strategy intended to expand the companys growing service menu and scope of services it can deliver from India.