Hexaware completes $34 mn US acquisition

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Hexaware completes $34 mn US acquisition

Hexaware Technologies a global IT & BPO services provider, has announced that it has successfully completed the acquisition of FocusFrame Inc, a US based firm specializing in automated testing of ERP and custom applications.

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Hexaware Technologies a global IT & BPO services provider, has announced that it has successfully completed the acquisition of FocusFrame Inc, a US based firm specializing in automated testing of ERP and custom applications.

FocusFrame's business revolves around systems verification, Quality Strategy and IT Governance solutions, and various functional, performance, and system stress verification exercises.

The addition of FocusFrame is Hexaware's ongoing strategy to strengthen its Testing Service Practice, which is the fastest growing service.

The acquisition was originally announced on November 6 this year, under a definitive agreement, FocusFrame Inc., was acquired in an all cash deal for USD 34.3 million. With the closing of this acquisition, FocusFrame Inc becomes a wholly owned subsidiary of Hexaware Technologies Ltd. FocusFrame's Mexico center is scaling up as Hexaware's sixth full fledged global delivery center.

As per the terms of the agreement, Hexaware paid US$ 25 millionn in cash towards acquisition of 100% shares of FocusFrame along with its employees and consultant base of over 200 personnel. The balance amount of US$ 9.3 million being paid out over 24 months contingent on achieving the projected revenue and margin targets. FocusFrame co-founders - Vaughn Paladin and Suri Chawla - will continue to run the operations as a fully owned subsidiary of Hexaware Technologies Ltd..

FocusFrame Inc is expected to raise the strength of Hexaware's Testing Practice Consultants to 600. Since the acquisition closed in November 2006, the December revenues for FocusFrame will be added in Hexaware's revenue for the quarter ending December 31, 2006.

Source: Adfactors PR Pvt Ltd.