CIBER SET FOR BIGGER OFFSHORING PLAY WITH ITEAMIC BUY

Bangalore
The Economic Times (Bangalore edition)

Ciber, the $1.2-billion US-based technology consulting company, is set to acquire Bangalore-based IT services firm Iteamic for an undisclosed sum. “We have been seeking to add both leadership and scale to our Indian operations for a long time,” said Ciber president Mac Slingerlend.

Iteamic is a five-year-old company with 200 employees with offices in Bangalore, New York and San Fransciso.

The deal is expected to close within 30 days. O3 Capital was the advisor to the deal. The acquisition is expected to boost Ciber’s off-shoring capabilities in India.

Iteamic CEO Raghurama Kote said the agreement with Ciber will provide them an opportunity of growth and stability and also target large IT offshoring deals.

Iteamic is expected to record revenue of $7-8 million for FY09. The company secured its first infusion of external funding in 2007 from Canbank Venture Capital Fund. Following this agreement, they will be exiting from the company. Kote said the existing top management of Iteamic will head Ciber India operations.

The current scenario in the Indian IT industry is witnessing certain pockets of consolidation with smaller IT companies finding it difficult to expand given the tighter market conditions. On the other hand, large IT services firms in US and Europe are looking at scaling up offshore presence through inorganic options in India.