LogicaCMG, which aims to become one of the top 10 IT services companies in the world by revenue over the next five years, is planning acquisitions worldwide, including one in India, according to a company executive.
"Our acquisition strategy is based on acquiring companies which can either improve our critical mass in a particular geography or strengthen our offerings in a key market or technology," group finance director of LogicaCMG. Seamus Keating, said.
London-based LogicaCMG provides management and IT consulting, systems integration and outsourcing services across diverse markets including telecommunications, energy and utilities and financial services.
The company was formed in December 2002 by the merger of Logica and CMG in London.
LogicaCMG is scouting India for a software development organisation with a staff of about 500 people, probably in the financial services or telecommunications software sector, according to Keating.
Although the company has kept open the option to acquire a business either outright in cash or by a stock swap, it was more likely to use stock swaps to maximise its appreciating stock value, Keating said.
LogicaCMG is also planning to acquire companies in the US and other countries.
"We would look to expand in key geographies and to build on our sector expertise," Keating said. "Obviously to achieve our ambition of a top 10 position, we will have to be larger in the US market for example."
LogicaCMG already has a software development centre in Bangalore, India. Last September the company announced plans to increase the office's staff from 400 people to about 1500 over an 18-month period, as its customers showed interest in Indian offshore development.
The company's Bangalore staff currently handles information technology services, product development and man a technical support desk for customers.
The centre is also developing products for the financial services, mobile telecommunications and energy and utilities markets.