Teledata buys Singapore firm

Teledata Informatics Ltd is a 16 year old software and solutions com. Chennai-based Teledata Informatics on Monday acquired a majority stake in the Singapore-headquartered IT distribution and PC maker, eSys Technologies, by investing $105 million (Rs 470 crore).

Teledata and eSys are also likely to invest $20 million (around Rs 90 crore) in Chandigarh to open a total business offshoring/outsourcing unit, with at least 1,000 employees, over the next six months, according to a company source.

TBO is a concept that allows whole businesses to be outsourced and run from low-cost, high-skilled countries. Currently, eSys utilises its centres in India and Singapore to carry this out.

Since 2004, Teledata has acquired 27 companies and with the recent acquisition of eSys, it is already in talks with two other companies in Europe for acquisitions. "The company is in the process of acquiring a marine insurance business company and the other is a software provider for billing in the utilities space," said a company spokesperson.

The valuation of these companies is much more than the recent acquisition of eSys.

"We have invested about $120 million in the company and will be investing additional 50 per cent of the already invested money in the next three months with an intention of acquiring all the other business of eSys," said K Padmanabhan, managing director, Teledata.

In 2005, eSys had a turnover of $1.676 billion and a profit of $15.5 million. The investment will enable the company capitalise on the synergy between Teledata and eSys.

Padmanabhan, while explaining the synergy between the two companies, said: "Every year we buy 3,000-4,000 personal computers for several e-governance projects. This year we plan to buy 15,000 PCs.

The eSys acquisition will now make these projects cost effective." Vikas Goel, eSys group chairman and managing director will be the CEO of Teledata Technologies and will hold 49 per cent in the company.

eSys already has a PC manufacturing unit in Delhi and is in the process of setting up another unit in Himachal Pradesh to produce 1 million units per year with an investment of Rs 250 crore.

"We might shut down the Delhi plant and shift the entire manufacturing capabilities to the new centre," said Goel.

Press Release

eSys in Strategic Investment deal with Teledata
Singapore headquartered eSys Technologies gets SGD160million investment from Teledata through its subsidiary

Singapore 13, Dec 2006

Singapore Headquartered IT Distribution major and PC Maker, eSys Technologies has signed an agreement with Teledata Informatics Ltd for a strategic investment of up to SGD160 million in eSys. Teledata Informatics Ltd is a technology solutions provider with a vision to be among the top 20 IT companies of the world.

eSys and Teledata would accelerate the business levels with tremendous prospects”

Mr. Vikas Goel will also be joining the Board of Directors of Teledata Informatics. Welcoming Mr.Goel to the board, Mr. Padmanabhan said, ‘We would like to utilize Mr. Goel’s vision, global experience and acumen to further interests of Teledata group of companies’

Mr. Vikas Goel is a well known entrepreneur and has won numerous awards. He was Ernst & Young Entrepreneur of the year in Singapore in 2005 and was one of the top contenders for World Entrepreneur of the Year award in Monte Carlo in June 2006. Besides this eSys has won numerous awards including Enterprise 50 Award in 2005 given to most dynamic companies of Singapore and Enterprise of the Year 2005 in Singapore Business Awards.

About eSys Technologies

Incorporated in the year 2000, Singapore headquartered eSys Technologies is a Multinational IT Company with over 100 operations in more than 30 countries. With a global leadership position in desktop Hard Disk Drive distribution and other Technology products, eSys has successfully diversified into PC Manufacturing and Business Process & IT Services. eSys has four advanced, automated PC manufacturing facilities in Singapore, Los Angeles, Dubai and New Delhi, which produce the world’s best priced computers.

It has pioneered the concept of TBO (Total Business Off shoring / Outsourcing) in which whole businesses in multiple locations are run from low-cost, high-skilled countries. Currently eSys utilizes its centres in India and Singapore to carry this out.

With more than 1100 employees, and business customers spread across the globe, eSys has three business verticals of Technology Distribution, PC Business and Business Process & IT Services.

eSys is among the fastest growing companies in the world across industries and clearly the fastest growing IT Distribution Company globally. eSys has won numerous awards, prominent among them are Ernst & Young Entrepreneur of the year, Singapore 2005, being among Top contenders in E&Y World Entrepreneur of the Year in Monte Carlo in June 2006, Enterprise of the Year 2005 in Singapore Business awards, Top Spot in Enterprise 50 in Singapore in 2005, given to most dynamic companies in Singapore, etc.

Some more facts & figures on Teledata will come soon!!

- Mumbaikar