NIIT Tech buys Room Solutions for $25 mln
Mon May 8, 2006 12:39 PM IST
NEW DELHI (Reuters) - NIIT Technologies Ltd. has bought UK-based Room Solutions Ltd. for about $25 million to increase its client base in the insurance sector, a top company official said on Monday. Arvind Thakur, chief executive of the Indian mid-sized software services exporter, said Room Solutions would become a wholly-owned unit by the end of 2007. NIIT Tech's stock reached a new high of 241.95 rupees after the announcement, up 7.36 percent from its close on Friday. "We were missing the UK piece in the insurance segment," Thakur told reporters. London-based Room provides technology solutions to the insurance market. Room posted a turnover of $25 million in 2005, nearly equal to the value of NIIT's purchase price. The deal comes a fortnight after another Indian company, Bangalore-based telecoms software firm Subex Systems Ltd., said it would buy UK-based Azure Solutions Ltd. for more than $140 million to expand its global presence. Subex said the merged entity would be the world's largest vendor of fraud-prevention software for the telecoms industry, serving 23 of the world's 40 largest (telecoms) operators. |
