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| Crisil to buy Pipal Research for Rs 58 cr |
| BS Reporter / Mumbai Sep 23, 2010, 00:38 IST |
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Credit rating agency Crisil today announced acquisition of Pipal Research Corporation, a knowledge process outsourcing (KPO) firm, for $12.75 million (around Rs 58 crore). Pipal is a subsidairy of BPO firm Firstsource and had picked up the 51 per cent stake in 2004.
 Crisil operates a KPO division called Irevna. The acquisition will broaden Irevna’s portfolio and presence in the industry. Irevna, with over 70 clients, provides research and analytical services to investment banks, insurance companies, asset management firms, and other financial institutions. Five of the world’s top 10 investment banks are clients of Irevna.
“We have acquired 100 per cent business of the company. This will give us presence in the corporate segment. We are already strong in finance and insurance. This also increases our geographical footprint,” said Roopa Kudva, managing director and CEO of Crisil.
Pipal, headquartered in Chicago, has centres in Gurgaon, Noida and Bangalore. Irevna has presence in Argentina, Poland, China, Chennai and Mumbai. With close to 40-50 clients and revenues of $8.1 million (around Rs 36 crore), Pipal serves global firms in telecommunications, finance, technology, consumer packaged goods and industrial sectors.
“The KPO industry did see some slowdown during the recession, but we are seeing growth. Until last year, we grew 30-40 per cent. We are expecting 20-25 per cent growth this year,” said Kudva. This is the third acquisition by Crisil in the KPO space. Crisil’s revenue from the research business touched Rs 240 crore for 2009 (calender year), of which a significant amount came from its KPO business. In 2008, Pipal signed a $15 million, three-year partnership agreement from British Telecom Global Servcies. The deal, that was milestone-based, was extendable for six years with total value exceeding $30 million.
As for Firstsource, since it restructured itself into vertical sectors a year back, it has been looking closely at some of its businesses. The sale means the company wants to focus on its BPO business. Firstsource stock closed at Rs 28.60, up 4.76 per cent from the previous close of Rs 27.30. Crisil’s share price touched an intra-day high of Rs 6,190, up 0.34 per cent. The firm’s share closed at Rs 6,129 down 0.63 per cent.
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