Thomas Cook's arm to acquire 49% stake in MFXchange Holdings

This marks Ikya Group's entry into IT services and solutions segment in North America

Travel firm Thomas Cook India on Tuesday said its arm IKYA Group had entered into a definitive agreement with Fairfax Financial Holdings to acquire a 49 per cent stake in its US-based wholly-owned subsidiary, MFXchange Holdings Inc, for an undisclosed amount. Based out of New Jersey, MFXchange provides hosted information and technology applications and outsourcing solutions for the US commercial property and casualty insurance sector.

The integration of MFXchange with IKYA will result in the formation of Global Technology Services Group (GTS Group), marking IKYA's entry into the IT services and solutions space in the Northern American market, the company said. In February last year, Thomas Cook, controlled by Canada's Fairfax Financial Holdings, had bought a 74 per cent equity holding in IKYA Human Capital Solutions for Rs 256 crore.

As a part of the transaction, Vikram Gulati, who recently quit as the chief executive officer (CEO) and managing director of Happiest Minds, will join IKYA Group as the president of its GTS Group and CEO of MFX. Based out of New Jersey, Gulati would be responsible for both the strategic and operational aspects of the business, and will report to Ajit Isaac, MD & chairman of IKYA Group.

In March, Business Standard had reported that IKYA Group, which has presence across human resources services, facilities management services, food & hospitality and skill development services, was looking to branch out into IT services through an acquisition.

The company was in talks with at least two US-based IT services companies and was looking to buy a company with revenues of around $50 million (around Rs 305.7 crore) by March 2015.

Ikya Group's GTS Group focuses on IT staff augmentation, solutions, and products. Ikya had earlier acquired Magna Infotech, which is now a part of its IT staff augmentation function. Also, Brainhunter, which was also acquired by Ikya Group earlier, is into IT staff augmentation in North America. “The solutions & products business will be driven by the current transaction and the existing offshore delivery center in Chennai,” the company added.

“The combination of MFX’s insurance technology platform with IKYA’s worldwide business services expertise will create a formidable international platform, generating enhanced offerings to their respective clients, and creating a unique organization in the technology and business services marketplace,” Ikya Group said in a release.