Infotech Enterprises to acquire US firm

Infotech Enterprises America Inc., the wholly owned subsidiary of Hyderabad-based Infotech Enterprises (IEL) entered into a definitive agreement with Time To Market Inc. (TTM) to acquire the company and all its affiliates, for an undisclosed sum.

TTM has 40 engineers in San Jose, CA, USA and another 80 in Hyderabad and Bangalore. TTM will become part of the newly created Hitech vertical at Infotech under the leadership of Bhanuprakash Cherukuri, Senior Vice President. The vertical will focus on the US markets and leverage its recent entry into Japan in the near term.

Infotech will start addressing the European hitech markets in the next financial year. The new vertical will provide complete range of design and verification services to the hitech markets.
 
Established in 1998, TTM is focused on the niche area of backend physical design within ASIC design for several semi conductor manufacturers. Over the last two years, TTM has expanded its services to include front end designs. The combined entity has the capability to provide end to end design services to semiconductor, telecom & computing industries.

BVR Mohan Reddy, Chairman & Managing Director of IEL said, "Hitech sector is an important growth market for us. Infotech will pursue other organic and inorganic opportunities to address the whole spectrum of the Hitech Industry. We have reviewed a number of strategic options and decided on TTM. The niche and cutting edge technical expertise and the strong customer endorsements and relationships led to our decision in favour of TTM. The work they are doing in the 65 nm design process is very impressive."

According to the NASSCOM BAH report on Design Engineering Services, global engineering spend on Hitech design services stood at $170 billion in 2004 and is estimated to reach $ 300 billion by 2020. The report projects the hitech domain to be the fastest growing segment of opportunity.

Hitech is also estimated to have the largest engineering spend and is the most open to global engineering processes. The potential in Hitech industry for off shoring is estimated in excess of $15 billion by 2020.