HGS in the News

Hinduja Global looks at acquisitions in US

Wednesday, September 21, 2016 | Online

Business Process Management (BPM) company Hinduja Global Solutions (HGS) is eyeing acquisitions in the healthcare and digital verticals as the company seeks to get back on the growth track.

While the company did not disclose the size of company it wants to acquire, Partha DeSarkar, Global CEO, HGS, said it will be looking at acquiring companies in the US. This comes on the back of an acquisition of Colibrium, an Atlanta-based company last year. Colibrium has software platform and servicing capabilities in the sales and enrolment area for the US and global health insurers.

One of the reasons for HGS to make an acquisition is to accelerate revenues and get access to clients.

“Our business was impacted by a Canada-based company and this hampered our operations there,” said DeSarkar, adding that after nine months, the deal has been restructured and things back on track. The company, however, as a policy does not disclose client details or size of the deal.

However, Ramkrishan P. Hinduja, Chairman, Hinduja Global Solutions and a graduate of the Wharton School of Business, said the new healthcare reforms in the US and a $160-billion business opportunity will drive growth of the company going forward. According to data, 41.8 per cent of its business comes from health insurance vertical and 65.8 per cent of revenues comes from the US.

The Bengaluru-based company had revenues of $500 million.

It posted ₹ 909 crore in the June-ended quarter, a 23.1 per cent growth when compared to the same period last year.

At a time when larger outsourcing companies are paring down their revenue guidance for the fiscal, citing macroeconomic and client-specific issues, HGS is upbeat about its prospects.

Source: http://www.thehindubusinessline.com/info-tech/hinduja-global-looks-at-acquisitions-in-us/article9132540.ece