The Japanese company, Hitachi Ltd has acquired the controlling stake of approximately 76 per cent in the IT services company, Micro Clinic India Pvt Ltd, for an undisclosed financial consideration. The deal was sealed by the company’s wholly owned subsidiary, the Hitachi Systems Ltd.
It is said that with this deal, the Hitachi Systems will enter the Indian IT market, by March, when the deal and share transfer will be completed. According to a Hindu Business Line report, Tarun Seth, managing director of the New Delhi-based, Micro Clinic India said that the deal may be between “Rs 800 million to Rs 1 billion,” and the company will now be known as Hitachi Systems Micro Clinic Pvt Ltd. While, Seth will serve as the MD in the new company that has a 650-personnel staff, who will also continue in the new set up.
Micro Clinic’s turnover is expected to be nearly Rs 1.5 billion in this fiscal year. The company was originally established in 1993. It has 15 business sites in major cities across India, and about 150 satellite offices that provide a range of IT services centred on the supply of IT platforms and maintenance services. It is working in virtualisation services, managed services and others. This acquisition will enable Hitachi Systems to obtain a business platform in India, and to build value chain by leveraging synergies between the two companies.
Hitachi Systems is a core company of Hitachi’s information and telecommunication systems business. It aims to grow revenues in India by nearly three-times, to ¥300 billion by March 2016, as compared to that on 31 March, 2012.
The new company will provide to Indian enterprises, Japanese companies and other foreign-affiliated companies in India, with one-stop services. This will be done by joining both the companies’ products and services, technologies and know-how, and business resources.
