HYDERABAD: NYSE-listed Computer Sciences Corporation (CSC) has acquired AppLabs Technologies for an undisclosed sum. According to market sources, the deal was valued at `1,000 crore to `1,200 crore. The integration of AppLabs into CSC is expected to be completed by the end of April, 2012.
The 10-year-old AppLabs is estimated to have revenues of over $110-$120 million.
Founded in 2001, by Sashi Reddi, the company has over 2,500 employees focussing on key verticals such as financial services, insurance, technology, healthcare, retail and travel. “As a pioneer in specialized testing services AppLabs will strengthen the portfolio of services that are offered to CSC’s customers,” Reddi said.
WestBridge Capital, through WestBridge Ventures I and WestBridge Ventures II, had invested about $20 million in AppLabs across three rounds in 2004, 2007 and 2008 translating to 50 per cent stake in the company. While AppLabs promoter and founder Sashi Reddi held 40 per cent, the remaining 10 per cent was with its employees.
The $19-billion CSC employs over 92,000 globally of which over 19,000 are based in India across seven locations. “We will offer combined sales support, expand our testing services portfolio to cater to all industry verticals,” said J S Samuel, global practice lead, Independent Testing and Validation Services, CSC.
In the past, AppLabs acquired Hyderabad-based ValueMinds, a developer of automated testing tools. Earlier in 2005, it had acquired KeyLabs, a software and hardware testing firm, followed by the $37 million purchase of the UK-based testing consultancy firm IS Integration in 2006.