iGate gets nod to buy out Quintant

iGate Global Solutions, a 100 per cent subsidiary of US-based iGate Corporation, has received Foreign Investment Promotion Board (FIPB) and Department of Information Technology approvals to acquire the remaining 49 per cent stake in Quintant Services through a share swap deal. iGate Global already holds 51 per cent in this company.

The remaining 49 per cent stake in Quintant is held by promoters who are mostly NRI angel investors as well as the employees. iGate has expressed its intentions to acquire this remaining stake during January 2004 stating that they intend to mop up the remaining stake in 3-4 months time.

Speaking to Business Standard, iGate Global CEO Phaneesh Murthy said: "We have received the FIPB and Department of IT clearances to acquire the remaining 49 per cent in Quintant Services. It will be through a share swap deal and we should be finalising the valuation and swap ratio in the near future. This is being basically done as part of the corporate clean up the structure in the company."

Quintant is a Business Services Provisioning company promoted by Phaneesh Murthy with investments from GMR Group. iGate had acquired majority stake from Hyderabad-based GMR group for $18.5 million at a premium of $2.5 million.

GMR Group had invested $16 million in Quintant after having committed a total first round funding to the tune of $29.8 million.

When iGate acquired 51 per cent in Quintant, it took on board the 70-strong team of Quintant and also assets worth Rs 68 crore and a cash of Rs 60 crore.

iGate with this acquisition will gain a lead in Business Services Provisioning, a concept initiated by Quintant, believed to be the next big wave in the BPO segment. This part of outsourcing includes the integration of technology and operational capabilities to evolve into a full-fledged platform.

"The acquisition of Quintant will augment iGate's domain expertise and strengthen its presence in the financial services segment. As a leading global offshore IT services company, iGate will leverage its suite of offerings with the pioneering BSP expertise of Quintant," iGate co-founder Sunil Wadhwani had announced.