Genpact acquires Symphony Solutions

Analysts peg the deal to be Rs 450-500 crore.

Genpact, the country’s largest pure-play business process outsourcing (BPO) company, today acquired Bangalore-based analytics and data management services provider Symphony Marketing Solutions (SMS). Though the deal size was not disclosed, analysts peg the deal to be around Rs 450-500 crore and the SMS’ revenue to be around Rs 300 crore.

“This expertise will allow us to offer a broader range of services, ranging from core finance and accounting, procurement and supply chain to data management and advanced analytics solutions,” said Pramod Bhasin, president and CEO, Genpact. Employing over 1,200 staffers worldwide, SMS offers analytics services to retail, pharmaceutical and consumer packaged goods verticals.

“Coming as it is in times when Genpact’s business is under pressure, both from volumes as well as a margins perspective, this acquisition is driven with a motivation of having a larger pie of burgeoning analytics services which offers both above average growth and margins. While this acquisition will have a comparatively marginal impact on revenue growth, the impact on margins will be materially significant,” said Alok Shende, Founder and Principal Analyst, Ascentius Consulting.

In 2008, analytics contributed almost 10 per cent to Genpact’s $1 billion (Rs 4,680 crore) revenue and after this acquisition, the share is expected to go up to 15-18 per cent.

Analysts also noted that with private equity partners General Atlantic, Oak Hill and GE looking to exit their stake from Genpact, this could be one of many acquisitions the BPO might do in the near future.

Genpact had earlier acquired mortgage firm Money Line Lending Services in July 2006, SAP service provider Ice Enterprise Solutions in March 2007 and Axis Risk Consulting Services in June 2007.

For the third quarter ended September 30, it posted a 1.6 per cent fall in its net income to $33 million (Rs 155.3 crore), compared with $33.6 million (Rs 157.9 crore) in the corresponding quarter a year earlier. Total net revenue was $284.4 million (Rs 1,336.6 crore), up five per cent year-on-year from $270.8 million (Rs 1,272.7 crore).