Monday, September 15, 2008

RANKLIN BUYS US-BASED ERP PLAYER CIGNITI

Rajesh S Kurup, Mumbai, September 15, 2008
Business Standard

Ranklin Solutions, a Hyderabad-based software development company, has acquired US-based enterprise resource planning (ERP) firm Cigniti for an undisclosed amount. Cigniti also has presence in the UK, Australia and New Zealand and has over 250 employees on its payroll.

When contacted, Ranklin Solutions CEO, Srikanth Vurranki, confirmed the development. However, he neither divulged the value of the deal nor the turnover of the acquired company, citing a non-disclosure agreement.

Ranklin, a Rs 200-crore company, had acquired IT and BPO firm Logic Bytes in May this year for Rs 91,80,000.

Cigniti has around six major ERP installations across the world, and is also an implementation partner for various technologies like Java (Sun Microsystems), Net (Microsoft), SAP and IBM technologies. An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, supply chain management, and customer relationship management.

Ranklin Solutions is also planning to move some of the business to India to get benefits of cost arbitration in the country. It intends to move businesses to its subsidiaries Logic Bytes and Chandra Technosoft, an ITeS company.

According to an analyst, who requested anonymity, Indian companies were looking at acquiring IT and BPO companies in the US to increase its footprint in these regions.

“A sales front or presence is needed in these countries to serve their clients better, while for BPO companies having a back office presence in India helps in improving profit margins,” he added.

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