Information Madness

Though this is not shockingly new for Indian firms, lately we are seeing lot of Indian companies acquiring foreign companies specially US based companies. Back in 2006 one major U.S. acquisition took place when GHCL, a Gujarat based company acquired Dan River, a Danville, VA based maker of home textiles for $93 million.

In June 2006, Tata Coffee paid $220 million to buy Eight O'Clock Coffee, a venerable U.S. brand. In August, Tata Tea paid $677 million for a 30% stake in Glaceau, a maker of vitamin water in Whitestone, N.Y.(source: Wharton)

Megasoft and US-based Boston Communications Group (BCGI) on July 12 announced that Megasoft would acquire BCGI for around $65 million.The two companies are into products and services, including real-time charging, billing, pre-paid products and managed services catering to the wireless telecom space.

Anil Ambani led Reliance Communications on Monday confirmed that it has agreed to acquire the US-based Yipes Holding Inc in an all-cash deal for Rs. 1,200 crore ($300 million).

Yipes provides high-speed data network access to 1,000 customers in 14 US metros, operates an optical fiber network of more than 22,000 m. The goal is ? definitely to penetrate the US market and double Yipes reach in metro cities in the USA.

Last year Reliance Communications acquired FLAG telecom and became the only service provider to carry calls from its hubs in New York/Los Angeles. Acquiring Yipes will make Reliance Communication's presence in USA more stronger. According to their website, 1 million people across the globe stay connected with their loved ones in over 200 countries through Reliance India Call.

SQL Star International Ltd, the Hyderabad-based IT services company also announced today the acquisition of TalentFuse Inc, an IT consulting company serving customers such as Qualcomm, Intuit, Home Depot, Microsoft, Invitrogen etc.

And last but not least, Mastek also announced today the acquisition of Vector Insurance Services LLC, a technology solutions provider and third party administrator.

So, do you think American companies should now focus for possible future acquisition from Indian firms ?