Infogain acquires Blue Star Infotech for Rs 180 cr

San Francisco-based IT services company Infogain on Tuesday announced acquisition of BlueStar Infotech, the information technology (IT) arm of air conditioning major Blue Star for Rs 180.80 crore. As part of the deal, Blue Star Infotech will retain its real estate and other assets, valued at around Rs. 96.7 crore, after the sale of its IT business.

"The combined entity will have revenue of over $150 million (Rs 988 crore), close to 4,000 employees and eight delivery locations globally. This acquisition is another achievement toward our vision of transforming Infogain into a much larger IT services player," said Kapil Nanda, Chief Executive Officer (CEO) of Infogain.

Infogain, which has offices in the US, Pune and Noida, is backed by India-based private equity firm ChrysCapital, which infused $63 million (Rs 403 crore) in August this year.

This acquisition will enable Infogain to expand its digital transformation offerings, particularly in the areas of cloud, mobility, SAP and analytics, and increase its capabilities in the travel, hospitality, high-tech and healthcare verticals, the company said in a statement.

Blue Star Infotech, a small IT company, had posted Rs 7.26 crore in net profit in the April-June period this year, up 140 per cent from Rs 3.10 crore profit made in the year ago period.

After the acquisition, Infogain CEO Nanda will continue to be chief executive of the combined entity. Sunil Bhatia, current CEO of Blue Star Infotech will join the management in July 2016 to assume his role as CEO of the combined entity, when Nanda would move to become full-time executive chairman of Infogain.