HGS, a provider of outsourcing solutions, has acquired
100 percent of the equity shares of HCCA Business Services (HCCA), a prominent
player in Human Resource Outsourcing (HRO) domain, from 3i Infotech.
The transaction also includes the Payroll Processing
activities of 3i Infotech in UAE and other Gulf Council countries. For the year
ended 31st March 2011, these businesses reported revenues of Rs 28.78 crore.
HCCA is a leading HRO provider servicing marquee
customers in Banking, Financial Services, Insurance and other industry
HCCA is a profit making company with more than 500
employees. Harish Chopra, founder of
HCCA and current CEO, will now become a part of HGS and drive the HRO practice.
This acquisition marks HGS’ entry into the HRO
domain. It builds on HGS’s global delivery capabilities and presents both companies
an opportunity to cross-sell to their existing clients. Consequent to the
transaction, HCCA would become a wholly owned subsidiary of HGS. This also
enables HGS to get a footprint in the Middle Eastern market.
The HCCA transaction is the second acquisition by HGS in
this month. Earlier this month, HGS had acquired On Line Support (OLS) a profit
making Canadian customer relationship management company with FY 2011 revenues
of C$ 63.4 million.
These two acquisitions, will add revenues of around $ 68
million annually to HGS. This will take HGS’ revenues from US $ 242 mn in FY
2011 to US $ 320 million on an annualized run rate basis. i.e. an increase of
over 30 percent profits, the overall EPS of HGS is expected to increase.
Our investment in HCCA is in continuation of our
endeavor to expand our suite of services HCCA offers payroll, statutory. As
both the acquisitions have healthy and also helps us to offer more options to
our clients. This acquisition is a strategic fit as it provides us an entry
into the HRO domain which holds great promise,” said Partha DeSarkar, Global
CEO of HGS.
This is another significant milestone for HCCA We are
confident that this partnership with HGS will provide us with an opportunity to
use HGS’s unique global delivery model to expand our operations both
domestically and internationally and help take it to the next level. We see
real opportunities for all of us to extend and enhance HCCA’s bouquet of services,”
said Harish Chopra, CEO of HCCA.
By Telecomlead.com Team