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Mid-cap companies tap 'sub-prime' opportunities in U.S.
Mid-cap companies tap 'sub-prime' opportunities in U.S.
by Admin on Fri Mar 14, 2008 1:27 pm
New Delhi: It is blessing in the disguise situation for Indian mid-cap companies. Though the sub-prime crisis afflicts the profitability of firms in the U.S., opportunities are opening up for Indian companies to acquire their counterparts there, reports Business Line.
In the last few months, there has been a notable growth in acquisitions abroad, especially in the U.S., by Indian mid-cap firms in different sectors. The Bangalore based Kavveri Telecom Products and Pradot Technologies, the Ahmedabad based Azure Styx Infotech, the Hyderabad based FXLabs Studios, the Indore based Plethico Pharmaceuticals, the Aluva based Kerala Ayurveda and the Vadodara based Minal Jewels are those on an acquisition spree after November 2007.
Virtus Global Partners' estimates indicate that, deal sizes of less than $25 million accounted for 76 percent of the U.S.-bound acquisitions by volume in 2007. It was followed by transactions in a range of $25 million to 50 million (eight per cent). "Deal sizes in the $50 million to 100 million, $100 million to 500 million, and greater $500 million range each accounted for less than six per cent of the 2007 transactions," an analyst said.
Kavveri Telecom Products' acquisition of Spotwave Wireless for $7 million in January 2008 offered it access to the intellectual property and fixed assets of the U.S. firm.
Plethico Pharmaceuticals acquired Natrol for $80.7 million in the same month to consolidate its position as a global player in herbal healthcare products. Azure Styx Infotech picked up 49 percent stake in Citizen Financial Mortgage for around $25 million in October 2007, while Kerala Ayurveda bought out Comprehensive Medical Staffing.
At the end of January this year, Pradot Technologies announced the acquisition of GroupOne Healthsource, a U.S. based full service healthcare billing, technology and consulting company.
In February, Kaashyap Technologies acquired the New Jersey based Logic Bytes, which provides software solutions to many big and small business companies in the U.S. FXLabs Studios, video game developer, paid $3 million to acquire the California based Interactive Media Technology.
In the last few months, there has been a notable growth in acquisitions abroad, especially in the U.S., by Indian mid-cap firms in different sectors. The Bangalore based Kavveri Telecom Products and Pradot Technologies, the Ahmedabad based Azure Styx Infotech, the Hyderabad based FXLabs Studios, the Indore based Plethico Pharmaceuticals, the Aluva based Kerala Ayurveda and the Vadodara based Minal Jewels are those on an acquisition spree after November 2007.
Virtus Global Partners' estimates indicate that, deal sizes of less than $25 million accounted for 76 percent of the U.S.-bound acquisitions by volume in 2007. It was followed by transactions in a range of $25 million to 50 million (eight per cent). "Deal sizes in the $50 million to 100 million, $100 million to 500 million, and greater $500 million range each accounted for less than six per cent of the 2007 transactions," an analyst said.
Kavveri Telecom Products' acquisition of Spotwave Wireless for $7 million in January 2008 offered it access to the intellectual property and fixed assets of the U.S. firm.
Plethico Pharmaceuticals acquired Natrol for $80.7 million in the same month to consolidate its position as a global player in herbal healthcare products. Azure Styx Infotech picked up 49 percent stake in Citizen Financial Mortgage for around $25 million in October 2007, while Kerala Ayurveda bought out Comprehensive Medical Staffing.
At the end of January this year, Pradot Technologies announced the acquisition of GroupOne Healthsource, a U.S. based full service healthcare billing, technology and consulting company.
In February, Kaashyap Technologies acquired the New Jersey based Logic Bytes, which provides software solutions to many big and small business companies in the U.S. FXLabs Studios, video game developer, paid $3 million to acquire the California based Interactive Media Technology.
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