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ALTEN makes a strategic acquisition in India and in the United States
Boulogne-Billancourt, 16 May 2011 – ALTEN, European leader in technology consulting and engineering (TCE), on 14 April 2011 announced the acquisition of 100% of the capital stock of CALSOFT LABS, a company in India and the United States. With this acquisition, ALTEN strengthens its offshore production capacity to the benefit of European projects and will now have a solid platform to develop the Indian, Asian and American markets.
CALSOFT LABS, powerful skills in embedded electronics, telecom networks and ISV markets
CALSOFT LABS achieved a turnover of $22M in 2010. Its 600 engineers design, develop and test technological products that require solid skills in electronics and embedded software, networking, multimedia, mobile platforms (Android), and software development for ISVs.
Present in Bangalore, Chennai and Mysore, CALSOFT LABS carries out 20% of its activity on the local market, and 80% in offshore production for American projects. For this reason, CALSOFT LABS also has offices in Fremont (California) and Boston (Massachusetts), where its teams provide local services and interface with Indian production centres.
Developing international business and work packages: an acquisition in phase with ALTEN’s strategy
ALTEN already opened a subsidiary in India in January 2010: ALTEN INDIA PRIVATE LIMITED (AIPL), based in Bangalore, today employs over a hundred people who are involved in transnational engineering and technical documentation projects, mainly for the aeronautical industry.
This acquisition reinforces ALTEN’s offshore production capacity in strategic core-business skills, to the benefit of work packages handled by European affiliates in the aeronautics, telecom, and land-transport sectors. ALTEN today runs 40% of its projects, and plans to increase this to 70% in 2014.
It will also allow ALTEN to disseminate its know-how in studies and design in India, Asia and the United States in order to develop the local markets and support its clients’ international deployment.
Strong ambitions: doubling activity in 3 years Speaking about the acquisition, Mr. Simon Azoulay, Founder, Chairman and CEO, ALTEN Group said “This acquisition is aligned with our long term strategy to substantially grow our Work Package (project team and dedicated structure) based business and maintain "high end" positioning in Technology Consulting and Engineering. Calsoft Labs with its significant experience in outsourced product development services in segments such as Telecommications, Embedded and Software products is a perfect match for ALTEN. Our focus for next 3 years would be to expand our presence in India by adding top notch engineering talent to the existing teams and offer scalable, quality driven offshore product development capability to our customer base in Europe.”
Mr. Gerald Attia, Deputy CEO and co-founder, ALTEN said, “We are proud to acquire Calsoft Labs to mark our entry into one of world’s most dynamic and fastest growing economies. This acquisition would not only add additional off-shore capabilities in India for worldwide ALTEN projects but also provide ALTEN with an opportunity to leverage its technical expertise in growth segments such as Aerospace, Defense, Automobiles & Energy for domestic India and United States markets.”
Commenting on the deal, Mr. Ramandeep Singh, CEO, Calsoft Labs said “This acquisition has made Calsoft Labs a part of the €916 M ALTEN Group which would provide new growth opportunities for the business and the cross border training and development opportunities for the employees of Calsoft Labs. We will maintain Calsoft Labs as an independent entity within the ALTEN group and continue to concentrate on the OPD business and expand our operations in India & US. We will also look for new projects from European market with the ALTEN support and customer relationships. With this association we aim to grow at the rate of 20-30% annually and also double our team strength by 2014.”
About ALTEN As the European leader in Technology Consulting and Engineering (TCE), ALTEN carries out design and research projects for the technical and IT divisions of major industrial, telecom and services companies. Founded in 1988 and present in 12 countries, the ALTEN Group achieved a turnover of 916.6 million Euros in 2010, and counts 13,100 employees of which 88% are high-level engineers.
ALTEN's stock is listed on 'compartment B' of the Euronext Paris stock exchange (ISIN FR0000071946). It is part of the SBF 120, the IT CAC 50 and MIDCAP 100 indices, and is eligible for the SRD.
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