| Hexaware buys FocusFrame for $34mn |
| BS Reporter / Mumbai November 6, 2006 |
| Hexaware Technologies has signed an agreement to acquire US-based testing services company FocusFrame for $34.3 million - a move that will position the Indian IT and BPO services provider as a high-end testing solutions provider. The acquisition, expected to close within the next six weeks, will also help in increasing the Pune-based company's revenues to $100 million in three years. As per the agreement, Hexaware will acquire FocusFrame in an all-cash deal with $25 million to be paid on closure of the acquisition, and the remaining over a two-year period. However, the payment of the remaining amount would be contingent on meeting projected revenues and margin targets. Atul Nishar, executive chairman of Hexaware, said: "This acquisition completes the required set of testing competencies that would help in increasing our marketshare apart from accelerating growth. This will also add 200 employees to our existing testing practice that has 400 personnel". The acquisition would also help in enhancing Hexaware's global delivery capabilities as FocusFrame has considerable presence in Europe and US. The company expects revenue to leapfrog to $100 million, he added. FocusFrame would be merged with Hexaware while the co-founders of the US company - Vaughn Paladin and Suri Chawla - would continue to run the operations. The California-based firm specialising in automated testing of enterprise resource planning and custom applications is expected to record revenue of $24 million this calendar year. The US company has a patented |
