Professional Documents
Culture Documents
2 July ‘10
US-BOUND ACQUISITIONS BY
INDIAN COMPANIES
Analysis of Transactions in the first half of 2010
July 2010
Pharma Chemicals 30
Oil & Gas 4% 5% 27
Finance
9% 23 23
4%
Mining
9%
Media
4% 8
7
IT/ITES
65%
2005 H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1
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US-
US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
With lowering of import tariffs, Indian companies Regulatory changes in India have made it easier
are facing increased competition within the for Indian firms to become more global in their
domestic markets. In order to compete operations. As foreign exchange reserves have
effectively, these companies are under pressure grown, the Reserve Bank of India has
to access global markets and operating progressively relaxed the controls on outbound
synergies. US companies provide one of the best investments making it easier for Indian
global platforms in the world. companies to acquire or invest abroad.
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US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
Information Technology
With 15 US-bound acquisitions in the first half of
2010, information technology was the most
acquisitive industry in India accounting for 65% of
the US-bound transactions by volume. Within this
industry, healthcare related information technology,
remote infrastructure management, specialized
business process solutions, and enterprise resource
planning sub-segments were attractive for 2010H1 Key Transactions in IT
acquisitions, given their untapped offshore Date Buyer Seller
opportunities and relatively higher margins. While Bureau of Collection
2-Jun Aditya Birla Minacs Recovery
mid-size companies, such as Prithvi Info Solutions,
19-May Avantha Group Pyramid Healthcare
Integra Software Solutions, Educomp and Cambridge
18-May Aegis Ltd SLM Corp-Back Office
Technologies sought to add new service capabilities
10-May Prithvi Info Solutions Percentix Inc
through US-bound acquisitions, large-size
27-Apr Integra Software Svcs Silver Editions Inc
companies, such as Aegis, Aditya Birla Minacs, Rolta,
16-Apr Glodyne Technoserve DecisionOne Inc
and Glodyne sought to strengthen their current 12-Apr Rolta India Ltd OneGIS Inc
capabilities. 8-Apr MphasiS Ltd Fortify Infrastructure
27-Jan Educomp Solutions StudyPlaces Inc
12-Jan Cambridge Tech Ent Vox Holdings Inc
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US-
US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
Avantha's acquisition of Pyramid Healthcare developed as much as some other regions. The
Solutions Marcellus is also attractive because it lies close to
Avantha Group’s acquisition of Pyramid Healthcare major consumption centers in the northeastern U.S.
Solutions for $20 million strengthens its global
presence in the niche healthcare solutions sector,
and provides a key platform to scale up domain
expertise in the US healthcare market.
Reliance’s acquisition of stakes in Atlas' Marcellus Essar Group's acquisition of U.S. coal producer
Shale operations for $1.7 billion and in Pioneer Trinity Coal for $600 million, gives the global
Natural Resources for $1.2 billion underscores the steelmaker direct access to a key raw material that
potential that large Indian companies see in the has seen a recovery in demand. The deal gives Essar,
prospects for U.S. shale fields, which have an international conglomerate with interests in steel,
produced significant natural-gas reserves for North energy, construction, and shipping, ownership of
American independent energy companies. Indian 200 million tons in coal reserves in the Central
companies are also eager to learn how to extract Appalachian region. The reserves are split between
gas from shale formations, and transfer those metallurgical coal used in steel production and
techniques to similar formations around the globe. thermal coal used to fuel power plants.
Shale gas accounts for between 15% and 20% of US The deal, in addition to JSW's acquisition of a coking
gas production but is expected to quadruple in coal mine in the US is a sign that Indian steelmakers
coming years, touching off a scramble among are shopping for raw materials in a bid to own more
producers large and small for access to resources. pieces of their supply chain. Essar has steel-making
Pioneer’s Eagle Ford shale is seen as an especially operations in North America, with a steelworks in
attractive prospect as it is believed to be rich in Ontario, Canada, and a plant planned in Minnesota.
natural gas liquids and condensates, which Essar also is developing and operates power
command higher prices than regular natural gas. generation in India, which has not been a traditional
The Marcellus Shale is among the larger shale market for U.S. thermal coal.
formations, containing vast amounts of natural-gas
resources, though the area hasn't yet been
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US-
US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
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US-
US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
List of US-
US-bound Acquisitions
Acquisitions by Indian Companies in 2010
2010 H1
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US-
US-BOUND ACQUISITIONS BY INDIAN COMPANIES July 2010
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