Encora, Meritos Tech merge

The US-based Encora Group, a product engineering services company, has announced a merger agreement with Meritos Technologies, a Bangalore-based offshore services company.

The combined entity will be known as Encora and is expected to register $20 million revenues this fiscal.

Founded in 2005, Encora, backed by technology-focused private equity firms, has a strong presence in the US. It provides product development services to over 35 global software product companies. Post merger, the Bangalore office (hitherto Meritos Technologies) will focus on software development and delivery.

At present, the combined headcount stands at 160. Encora plans to add 1,500 tech professionals over the next three years.

"We will invest $18 million over the next three years in the company. We are aiming for $50 million revenues by 2009. The merger enables Encora to offer our clients a broader range of services on a global basis," said Venu Raghavan, president and CEO, Encora.

Encora's investors "" Apar Investments, Basil Investments, Honorex and Avit Investments "" will not exit from the firm post-merger.

The combined entity will leverage its experience in building and managing offshore product development (OPD) which is among the fast growing segments in IT services.

The OPD space is estimated to grow to $11 billion by 2008, according to Nasscom estimates.