Hexaware completes acquisition of FocusFrame
:New Delhi, Dec 5: Hexaware Technologies Ltd today said it has successfully completed the acquisition of US-based FocusFrame Inc, specializing in automated testing of ERP and custom applications, for an all-cash deal of 34.3 million dollars.
The company and FocusFrame together will reinforce their expertise in Independent Testing and Verification services, which is amongst the fastest growing business opportunities for offshore vendors, the company said.
''We are very excited with the acquisition. Hexaware will now be in a position to offer complete lifecycle of Testing service and would be able to achieve more than 100 million dollar revenue from this practice in the next three years,'' company Executive Chairman Atul Nishar said.
FocusFrame Inc is expected to raise the strength of the company's Testing Practice Consultants to 600.
With the closing of this acquisition, FocusFrame Inc becomes a wholly-owned subsidiary of the company. The integration of FocusFrame's operations and business with the company has also been started. FocusFrame's Mexico center is scaling up as the company's sixth full fledged global delivery center.
As per the terms of the agreement, Hexawarer paid 25 million dollars in cash towards acquisition of 100 per cent shares of FocusFrame along with its employees and consultant base of over 200 personnel.
The balance amount of 9.3 million dollars being paid out over 24 months contingent on achieving the projected revenue and margin targets. FocusFrame co-founders - Mr Vaughn Paladin and Mr Suri Chawla - will continue to run the operations.
FocusFrame has nine Fortune 500 companies and seven 'million dollar' companies in its existing client list. It deals systems verification, quality strategy and IT governance solutions, and various functional, performance, and system stress verification exercises.
Since the acquisition closed in November, the December revenues for FocusFrame will be added in the company's revenue for the quarter ending December 31, 2006.