During the inauguration of HTMT’s second unit at Chennai recently, Mr Partha De Sarkar, the CEO of HTMT Global Solutions which is a part of the Hinduja Group and an outsourcing solutions provider, announced that they are buying a business process outsourcing (BPO) company in Europe by this fiscal’s end. Mr Sarkar mentioned that the acquisition of this BPO Company will mark their entry into Europe and that his company has set aside $110 million for this project.

The CEO of HTMT Global Solutions then added that four companies have been short-listed for this purpose. Mr Sarkar said that his company is keener to acquire a firm in United Kingdom due to language affinities. ‘We are interested in a company with revenues of about $50 million,’ he said. Thereafter pointed out, ‘With a drop in valuations of companies, this is the right time to make an acquisition.’  Elucidating this observation, Mr Sarkar said that the valuations were around nine to 10 times the operating profits earlier.

But due to the economic slug, Partha De Sarkar explained that the valuations are now seven to eight times the operating profits of the firm. It was also underscored that the global economic slump has slashed the rate of mergers and acquisitions and that even the banks are not very enthusiastic about forwarding loans for ventures at this point. A new geography, fresh customer market, new delivery locations, etc. are some of the many reasons why HTMT wants to buy the UK firm.