UPDATE 3-UK’s Serco moves into Indian outsourcing market
- Buys 60 pct of InfoVision for 13.3 mln pounds
- Plans move into public services market through deal
- To acquire remaining 40 pct over next two years
- Sees 30-50 pct annual revenue growth in Indian business
- Stock unchanged at 426.5 pence
(Adds comment from CEO and analyst, updates share price)
LONDON, Dec 11 (Reuters) - British government services firm Serco Group Plc (SRP.L: Quote, Profile, Research, Stock Buzz) entered the Indian business services contracting market on Thursday by buying 60 percent of India’s InfoVision Group for 13.3 million pounds ($20 million) in cash.
Serco, which runs railways in London and northern England and is involved in sectors including defence, nuclear and education, said it expected the acquisition to give it a platform to move into India’s public services market.
The group’s chief executive, Christopher Hyman, said InfoVision was cash-generative and had annual turnover of about 23-24 million pounds. The company believed it could achieve revenue growth in the Indian business of between 30-50 percent per year in the longer term.
