UST Global to go in for more buys

Company to finalise a few deals in the next 90 days.

UST Global, an IT services and solutions provider for the Global 2000 market, has zeroed in on a handful of technology players for acquisitions this year.

According to Sajan Pillai, CEO, UST Global, “We have zeroed in on certain companies, and will finalise a few deals in the next 90 days. The new acquisitions are in a bid to expand UST Global’s portfolio and achieve its billion-dollar revenue target.”

He added that a few of the targeted companies would be Indian players and foreign firms with an Indian presence. The company currently has registered $250 million in terms of revenue.

Not revealing the names of the target companies lined up for acquisition, Pillai said, “ERP and business intelligence being our key strengths, we would be acquiring companies that suit our portfolio.”

The company, which has established its presence in the North American, European, Australian and the Asia Pacific regions, currently services as many as 14 new Fortune 500 companies. The number will be doubled by next month.

Besides the acquisitions, UST Global is looking at getting itself listed, most probably on an American bourse.

“Our stock market listing would happen by the first quarter of 2010. Though we are not ruling out an Indian listing, a US listing is in our minds at the moment,” he added.

The company this June had also rolled out an employee stock option plan for its professionals, Pillai said.

Pointing out that this initiative was one of the most broadly based ESOP programmes in the industry and perhaps the first among companies based out of Technopark, Pillai said over 60 per cent of the employees would be eligible for ESOPs.

On the recessionist trend that has engulfed the American scene, Pillai said UST Global hadn’t had much of an impact as only around 30 per cent of its customer companies had been impacted. The remaining 70 per cent among its clientele, who operate out of Europe and Asia Pacific, are still intact and unaffected.

“Significantly, we are still hiring employees at the rate of 140 professionals every month. This means, we did not cut down on workforce even in these troubled times,” he said. UST Global is among the largest IT services companies in Kerala.

The company has also lined up its foray into Latin America and has finalised plans for expansion of its Malaysian operations and setting up of a campus in Thiruvananthapuram during the year.

“We have chosen San Diego in Chile for our Latin American plans and will start operations soon. The company will begin work on expanding operations at its Malaysian centre by the first quarter of 2009,” he added.

UST Global, meanwhile, is readying the first phase of its campus close to Technopark. “The campus would see an investment of $50 million in the first phase and add close to 5,000 professionals to the company’s employee list,” he said.