Thakur: Big plans

New Delhi, May 8: NIIT Technologies today bought a 51 per cent controlling stake in the UK-based software company, Room Solutions.

The company plans to complete 100 per cent acquisition of Room Solutions, an insurance solutions service provider, over the next year-and-a-half in an all-cash deal amounting to a little less than $25 million, said Arvind Thakur, chief executive officer of NIIT Technologies.

Room Solutions focuses on the commercial insurance market, including IT solutions, to the customers of Lloyds, the largest re-insurance firm in the UK.

NIIT would fund the acquisition through debt and internal accruals, said Thakur, adding the company has a $18-million line of credit from banks.

The acquisition is in sync with NIIT’s plans to strengthen presence in the insurance vertical in the UK.

“With this acquisition, we will have a presence in the UK and we will also increase our capability to offer services in the property and casualty segments of insurance. We already offer services in life and pension to our clients,” said Thakur.

Headquartered in London, Room Solutions supports about 120 people. It posted a turnover of $25 million in 2005.

Thakur said Room Solutions would become a wholly owned unit by the end of 2007.

“As an Indian mid-sized software services exporter, we are trying to grow organically and inorganically in the three verticals we are present in?insurance, retail and travel and transport,” said Thakur.

The deal comes a fortnight after Bangalore-based telecom software firm Subex Systems Ltd said it would buy UK-based Azure Solutions Ltd for more than $140 million to expand its global presence.

NIIT Technologies provides IT solutions globally, servicing customers in North America, Europe, Asia Pacific and Australia.