Tredence eyes acquisitions in BFS, healthcare vertical by year end

In terms of size, Tredence will be focussing on acquiring companies with revenues in the range of $10-15 million, though it would be flexible in its approach, said Bhowmick

Advent-backed data science and analytics firm Tredence is eying for acquisitions in the Banking & Financial Services (BFS) or healthcare domain by the end of this year or the first quarter of the next calendar year.

“We have set up the corporate M&A office, and we are actively engaging with founders of other companies…I anticipate that by the end of the year or early next year, we will actually start announcing some acquisitions, but we are still in the evaluation phase,” Shub Bhowmick, cofounder and CEO, Tredence told Business Standard.

Tredence forayed into the BFS and Healthcare & Lifesciences (HLS) sector in the last two quarters and is looking at acquisitions that can incrementally add value to the business. “As we are starting to incubate new verticals, BFS and healthcare, we would prefer companies that have a lion's share of its business in these verticals,” said Bhowmick.

The acquisition can also be aimed at expanding the company’s presence in new geographies like the UK and Europe. “We are planning to more actively pursue opportunities in that region…So, let's say, if we get a company which has a strong presence in that region, we will prefer that over a business where we already have a presence,” said Bhowmick.

In terms of size, Tredence will be focusing on acquiring companies with revenues in the range of $10-15 million, though it would be flexible in its approach, said Bhowmick.

Tredence currently has about 2,300 employees and continues to hire based on the demand environment. Pointing towards the recent layoffs in the industry, Bhowmick said, “We want to hire the right number of people, which we are already doing. And once they are in the Tredence family, we want to take care of them.”   

Last year, Tredence raised $175 million in Series B funding from Advent International to accelerate its growth in data and AI. The recent funding from Advent, one of the largest and most experienced global private equity investors, has valued the company at $500 million. Tredence had previously raised $30 million from private equity firm Chicago Pacific Partners, at a $100 million valuation.     

Founded in 2013 by Shub Bhowmick, Sumit Mehra, and Shashank Dubey, Tredence aims to bridge the gap between insight delivery and value realisation, providing customers with a differentiated approach to data and analytics through tailor-made solutions.