Tulip Services plans $40 mn US acquisition

Tulip IT Services, a New Delhi-based data communication and software services firm, having raised $150 million via foreign convertible currency bonds (FCCB), has earmarked around $40 million (Rs 160 crore) for a acquisition.

It plans to acquire a company in the US having managed services capability.

Further, the company has set aside $60 million (around Rs 240 crore) for expanding its network, around $20 million (Rs 80 crore) for setting up data centres and an equal amount will be invested in the statewide area networks (SWAN) project.

Tulip is setting up data centres in Mumbai, Bangalore, Chennai and Hyderabad. The first, in Delhi, is already operating.

"We are yet to finalise the target for acquisition but I think the time is right for acquisitions with valuations coming down in the US," said H S Bedi, CMD, Tulip IT Services.

He also said that Nokia will be using Tulip's services for its wireless village project to provide mobile telecom services to rural areas in the Asia Pacific region.