San Jose-based GlobalLogic, an engineering services company has reported that it will now actively look forward to acquisitions in cybersecurity, retail, medtech and automotive sector. The idea behind this is to grow to a $2 billion business in the next five years.
The IT outsourcing firm is on track to clock $650 million in revenue for the current fiscal and is growing at over 24% organically. In the current fiscal, the company recorded 5 percent sequential growth in the first two quarters of the current fiscal.
“Organically at 23-25% organic growth, I can achieve the $1 billion mark. I want M&A not for my numbers,” said Shashank Samant, chief executive of GlobalLogic. “At present we are working on three areas where we need to get further advantage: a security company, a company in retail CPG side, one on media and automotive side. All companies are in different regions.”
Also, the company had hired merger and acquisition specialist Jonathan Rothenberg to double the number of acquisitions in 2017. It was also mentioned that the size of the companies range between $60 and $250 million.
With this, the sector is also seeing strong investment from international companies which are setting up their Global In-house Centres in India. ER&D companies have been growing at a faster pace on an average of 22-25% growth compared to their larger IT services peers, although over a small base.
According to a recent report by industry body Nasscom, the ER&D market in India is projected to grow to $42 billion by 2022.
The firm has also made various new hires this year appointing Puneet Gupta as the Chief Technology Officer (CTO) and Nitesh Banga joined from Infosys as the Global chief operating Officer (COO).