Infomedia India - On The Prowl

Infomedia - Acquiring More Companies

Yellow pages and niche magazines publisher Infomedia India has acquired Delhi-based International Typesetting and Composition (ITC), a publishing services provider, for $12 million ( approximately Rs 54 crore). This is third acquisition by Infomedia in the last three months, the earlier being UK-based Keyword Group and Bangalore-based Cepha Imaging systems, which were acquired for $7 million in December 2005.

“We had identified publishing services and e-publishing as growth areas and with this acquisition will consolidate our position in the burgeoning publishing services sector. This will enable us to service both the main publishing geographies - UK and US - as our earlier acquisitions had enabled us to have a footprint in US,” Infomedia Managing Director Prakash Iyer told reporters here today. ITC is a publishing services provider, with a front-end in Fort Lauderdale and with footprints in both India and US. The acquired company employs 275 personnel and is expected to post $4 million in revenues in the current financial year, he said.

Infomedia is acquiring the company in two phases, with it already acquiring 83 per cent and the remaining to be acquired by June 2007. The consideration of $12 million is for the entire 100 per cent stake, and Infomedia expects to meet it through internal accruals. Quoting industry estimates, Iyer said that the publishing BPO market in India is a $250 million sector and is posting a 30 per cent annual growth. Of this, only less than 15 per cent is currently outsourced from India, and hence, there is a huge potential for growth in the country.

Earlier on December 20, 2005, Infomedia India had acquired two BPO firms, UK-based Keyword Group and Bangalore-based Cepha Imaging Systems, for $7 million. Keyword was founded by two individuals - Alan Rodwell and Steve Johnson - while Cepha was managed by an Indian, Benny Karunakaran. It is also planning to bring out directories for tier-II cities, such as Jaipur, Vijayawada, Chattisgarh and Orissa. At present, the company publishes directories from 16 locations in the country.

Infomedia is also planning to acquire American Devices India Pvt Ltd and US-based Software Services LC for Rs 52 crore. Both entities are engaged in the business of providing customised solutions to the publishing industry. The proposal for acquiring the two companies was approved by the board and the purchase consideration would be discharged in two instalments, the leading information products company informed the BSE.