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US Corpus to buy Recreate Solutions(The Economic Times (India) Via Thomson Dialog NewsEdge) : Corpus, a US-based telecom software and services company plans to acquire Mumbai-based media and entertainment outsourcing firm Recreate Solutions in an all-cash deal estimated at about Rs 60 crore. Venture capital fund Connect Capital owns 70% stake in Recreate while the remaining 30% is held by founder Bhaskar Majumdar and some key employees.Dallas-based Corpus has customers in telecom and finance. This is Corpus' second acquisition in India. Sachin Tummala, founder & CEO, Corpus, confirmed the signing of an agreement to buyout the existing shareholders of Recreate Solutions. "We want to expand our delivery and services capability from India and are using the acquisition route for building it," he added. Corpus will create a media & entertainment practice and service capability with the acquisition of Recreate Solutions. Mr Majumdar also confirmed the acquisition. Explaining the rationale for the sale, he says, "Some of the key technologies like IPTV and set top boxes that we were working on are now being offered by telecom companies due to the convergence. This changes the landscape for us and we thought it best to be part of a telecom company to ensure that we are still able to service this segment." Recreate Solutions was started in '01 and has been delivering software products and solutions to media and entertainment companies across Europe, US and Asia. The company specialises in interactive television, mobile and broadband and IPTV. Corpus has expanded its presence in the media & entertainment sector with the acquisition of Recreate.Corpus had acquired Bangalore-based banking software company Intellix in a stock-and-cash deal in March '06. Intellix was a break-away from Webtek and was set up in '02. Webtek was a subsidiary of Dresdner Kleinwort Wasserstein (DrKW) and was set up in 1998 by the US banking major for taking all the functions of the bank to the internet.A team of professionals led by Anil Ahuja and Avik Sengupta left and started Intellix to focus on the banking industry. According to Corpus officials, Intellix is being integrated with Corpus and its Bangalore operations will become a competency centre for Corpus BFSI customers.Corpus is a barely seven-year-old company with its largest telecom customer being Verizon in the US. Corpus' focus areas for its telecom customers are service fulfilment and billing. Service fulfilment covers marketing, sales, order management and workflow. These software applications fall under business support systems, as they indicate to management how well the customer acquisition is growing.Corpus had revenues of $54m for the fiscal year '05-06, up from $43.5m last year, a growth of 24 %. Corpus wants to generate $100m revenues in financial practices over the next four years. |