New Delhi, April 7: Global IT major IBM has bought Daksh eServices, India’s largest third-party BPO based in Gurgaon. Sources peg the cost of the deal at about Rs 750 crore.
IBM Business Consulting Services will acquire all of Daksh’s operations and staff in Asia, Europe and the Americas as also its client base.
While Daksh would become part of IBM Corp after acquisition, Sanjeev Agarwal, Daksh founder promoter and CEO, would continue to hold his job, sources close to the deal said.
“India is one of the fastest-growing economies in the world, and an important market for IBM. This investment is indicative of our commitment to supporting our clients in this region and leveraging local capabilities to extend our leadership position in the rapidly growing business transformation services market,” said Abraham Thomas, general manager of IBM India.
Though the company has not disclosed the financial details of the deal, sources said the deal was worth Rs 750 crore. The transaction will be complete by May, and will see IBM acquiring 100 per cent stake in Daksh.
In a statement, IBM said that the acquisition would enhance the company’s business transformation capabilities in key areas, including customer relationship management and financial management services in key industries such as banking, insurance, retail, technology, telecommunications, travel and transportation.
Nasscom, the premier IT industry association, has welcomed the deal since it signifies the government's growing commitment to attracting inward investment into the country by simplifying investment norms and reducing bureaucratic hurdles. “It signifies the coming of age of India as the preferred destination for offshore services in terms of talent pool and infrastructure,” Nasscom said.
The initiative is stated to increase the scope of IBM’s global network of 22 business transformation delivery centres, adding capabilities in India and the Philippines. This network includes centres in the US and 12 other countries. Daksh eServices will also bring a strong management team to IBM in India.
Daksh is an unlisted company which has been planning a $100-150 million IPO. Promoters Sanjeev Agarwal and Pawan Vaish, and equity investors, General Atlantic Partners, Actis (formerly CDC) and Citigroup, collectively hold around 65 per cent of the company.
