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|September 18, 1998||
NIIT to acquire software services company in USNIIT Limited has decided to acquire a software project services company in the US rather than look for an education and multimedia business.
NIIT has also decided to focus on US companies alone for this acquisition instead of evaluating software companies around the world.
NIIT has already formed an internal group called 'Global Alliance Organisation' that comprises members of its HRD and finance and services divisions. The Global Alliance Organisation will search for and shortlist the companies that can be acquired.
Explaining the software company's strategy of growing through acquisition, NIIT Chairman Shiv Nadar said: "We had the traditional choice of organic growth. We are now getting more convinced that we need to look at alternate avenues like an acquisition."
The NIIT board, which has been reviewing its growth strategy, has also approved the process of search and short listing from various investment bankers.
"The next three to five years present an enormous opportunity in the growing software services business. NIIT is poised for an exciting growth phase ahead with both software and training business doing extremely well in all the geographics in which it operates," claimed Rajendra S Pawar, NIIT's vice-chairman.
The company has posted gross revenue of Rs 4.96 billion for the fiscal year ended June 30, 1998, registering a growth of over 67 per cent over the previous year's revenue figure.
Nadar has clarified that neither he nor any of his investment companies are planning to sell any holdings in NIIT.
Addressing a meeting of the board recently, he said, "Neither I nor any of my investment companies are selling any holdings in NIIT. I am not exiting from NIIT and I stand committed to NIIT in exactly the same way as I have been since its inception in 1982."
- Compiled from the Indian media
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