Virtusa sets sights on acquisitions

Virtusa Inc, a global software development and IT services firm, has embarked on a new avenue for growth. The 2,600-strong company that has so far walked the organic route, is now eyeing acquisitions.

Discussions with a few companies are on and if the talks fructify, this could turn out to be the first acquisition for the company.

Speaking to Business Standard, Danford F Smith, president and chief operating officer, Virtusa, said, "We are evaluating opportunities and our conversations with potential companies for acquisitions are at various stages."

According to Smith, Virtusa today has the size and maturity to scale itself via the inorganic growth too.

"We are a profitable company and are generating cash. In fact, we have been growing at a compounded annual growth rate of 45-50 per cent over the last four years, with 20 per cent of our revenues coming from new business. We are on a fast trajectory of growth," he added.

With regard to the kind of company that Virtusa is training its sights on, Smith said, "It should be a company that gives us the competencies and capabilities in the areas where we work, to help us accelerate our growth process."

Meanwhile, the company plans to set up a two-acre campus in Colombo apart from a seven-acre one in Hyderabad.

"While the Hyderabad campus will have the capacity to house 5,000 employees, the campus at Colombo will be able to accommodate around 3,000 people," Smith said.

At present, the company employs 1,200 people in Hyderabad, 400 in Chennai and 700 in Colombo.