Hexaware completes closure of FocusFrame acquisition for USD 34.3 mn
Mumbai, Dec 5 (UNI) Hexaware Technologies today announced it had successfully completed the acquisition of FocusFrame Inc, US based firm specializing in automated testing of ERP and custom applications.
Informing the BSE, the company said FocusFrame Inc was acquired in an all-cash deal for USD 34.3 mn originally announced on November 6 this year under a definitive agreement.
FocusFrame's business revolves around systems verification, Quality Strategy and IT Governance solutions, and various functional, performance, and system stress verification exercises.
It said the addition of FocusFrame is the Company's ongoing strategy to strengthen its Testing Service Practice, which is the fastest growing service. 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.
With the closing of this acquisition, FocusFrame Inc becomes a wholly owned subsidiary of the Company. Taking a step ahead, the integration of FocusFrame's operations and business with the Company begins. FocusFrame's Mexico center is scaling up as the Company's sixth full fledged global delivery center.
Commenting on the transaction, Company Executive Chairman Mr Atul Nishar 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 USD 100 mn revenue from this practice in the next three years.'' As per the terms of the Agreement, the Company paid USD 25 mn 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 USD 9.3 mn being paid out over 24 months contingent on achieving the projected revenue and margin targets.
FocusFrame co-founders - Vaughn Paladin and Suri Chawla - will continue to run the operations as a fully owned subsidiary of the Company.
FocusFrame Inc is expected to raise the strength of the Company's Testing Practice Consultants to 600.
UNI SN KU VKG1635