The massive Japanese bank Sumitomo Mitsui Banking Corp. (SMBC) is in advanced negotiations to purchase a sizeable portion of YES Bank. The State Bank of India (SBI), which owns 24% of YES Bank and has been looking for a long-term buyer since the bank’s turnaround since its bailout in 2020, is coordinating the deal.
After months of discussion, the talks are now nearing their conclusion. According to reports, SMBC’s top executives met with SBI representatives and other important parties in Mumbai last week to negotiate the terms.
The deal, if finalised, will surpass SMBC’s $2 billion acquisition of Fullerton India Credit (74.9%) in 2021 as the company’s largest investment in India. The Reserve Bank of India (RBI) has not yet received any applications from Sumitomo to purchase stock in YES Bank, according to a media source.
SMBC to Acquire Controlling Stakes
According to Indian regulatory standards, SMBC is anticipated to purchase a majority stake, maybe 51%, which would necessitate an open bid for up to 26% of the bank’s ownership. Subject to regulatory approvals, SMBC would gain effective control of YES Bank through the sale of a 51% interest. A media report claims that SBI and SMBC are adjusting the deal structure.
News is on the horizon, though, as the RBI has offered consolation. According to reports, SMBC was “verbally assured” by the Reserve Bank of India (RBI) that it would be permitted to keep the majority of YES Bank. However, the RBI’s current standards will continue to cap voting rights at 26%.
Nevertheless, Sumitomo does not currently have an application pending with the RBI to purchase stock in Yes Bank. Previous instances of such exceptions include DBS’s purchase of Lakshmi Vilas Bank and Fairfax’s acquisition of Catholic Syrian Bank.
If the purchase goes through, SMBC will become the bank’s biggest shareholder. Other institutional holders, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, LIC, Carlyle, and Advent International, may or may not leave, though.
Change in Operations
In October, Prashant Kumar, the bank’s CEO, will finish his tenure. SMBC will suggest applicants for the position to the central bank if the deal closes. In anticipation of the transaction, SMBC has already established India as a distinct operating zone.
The co-head of SMBC for Asia Pacific, Rajeev Kannan, will now be reporting directly to Tokyo. The goal is to eventually combine SMBC India with YES Bank, but that is still a long way off.
In FY25, YES Bank’s deposits reached INR 2.85 trillion, a 2.7-fold increase since March 2020. Future growth is anticipated to be driven by retail and SME loans. We would like to maintain the percentage of retail and SME at about 60%, Kumar stated on the most recent earnings call.
Infosys, the second-largest IT services company in India, has already acquired two companies this year and is searching for more. The company has stated that a large-scale acquisition similar to its previous in-tech purchase is definitely within the range of possibility.
Infosys CEO Salil Parekh recently spoke with a news agency, where he stated the company’s interest in data analytics and software as a service (SaaS) acquisitions, as well as potential exploration of certain European and American regions.
“Absolutely, I think those would be the size that we will look at in terms of scale, and given our structure we could do a few of those.” Parekh was asked if future acquisitions of the same scale could be considered, about the 450 million euros paid for in-tech.
Recent Acquisition by Infosys
A semiconductor design services company based in India, InSemi Technology Services, was acquired by Infosys in January for a consideration of up to INR 280 crore (including earn-outs, management incentives, and retention bonuses).
After that, three months later, there was a larger purchase. The German subsidiary of Infosys, Infosys Germany, has agreed to buy out in-tech Holding, a market leader in engineering research and development services, for a maximum consideration of 450 million euros, or approximately INR 4,045 crore, in April. In-tech Holding is based in Germany.
“We feel very good about expanding that footprint”, Parekh said, “because we already have a very good business in engineering services within Infosys and because we acquired two other companies that were also in the engineering services industry. One of these companies was focused on semiconductors and the other on automotive,” he added.
Expansion in Other Areas
Infosys is presently assessing other companies with a view to making more acquisitions. With a healthy balance sheet and healthy cash creation, the company is now at ease integrating acquisitions across multiple regions. The company has previously provided engineering services and is currently expanding into new sectors, such as data analytics, software as a service (SaaS), and possibly even other European and American locales.
The integration factors, cultural compatibility, financial cost, and strategic synergy, according to Parekh, are crucial.
“We have items in the works that are usually in the pipeline, but they move at their own pace. Before we can decide how to integrate them, we have to figure out whether they are a good strategic match, how much they will cost, and whether they will fit in with our company’s culture. We will have to wait and see what comes out of all these negotiations”, Infosys stated in a press statement.
Cred is a popular fintech company founded by Kunal Shah in 2018. It is a reward-based credit card payments startup. Recently, Cred raised $80 million in its latest funding round at a $6.4 billion valuation. Even after making a loss of Rs 524 crore in FY21 why is this company getting so many investors? Is Cred more than just a credit card payment app?
To find answers to these questions let’s see what acquisitions Cred has made in recent times. This will give us a clear idea of the future plans of Cred.
In October 2021, Cred acquired HipBar, an alcohol delivery and payment startup. Cred was interested in this deal because HipBar has a prepaid payment instrument license (PPI).
Now, what is PPI? It is a prepaid payment instrument that allows the payment of goods and services, including fund transfers against the value stored on the prepaid card. RBI has issued this license to only 37 firms in the country.
Using the PPI licence, Cred can issue cash vouchers and prepaid cards and can facilitate digital wallets for the Cred community.
Cred’s holding firm Dreamplug Technologies has held the share capital of Prasanna Natarajan, founder and CEO of HipBar and Rajalakshmi Natarajan, co-founder and director of HipBar.
Kunal Shah and his brother Rohan Shah have joined the board of HipBar as directors. Rajalakshmi has resigned from the company. Although Prasanna is still a director.
With this acquisition, Cred will now directly give cashback to the user’s wallet instead of their bank accounts. Users can then use the wallet to pay credit card bills and purchase products from its merchant partners.
This is a smart strategy by the company to make the customers stay connected with their ecosystem.
“It appears to be a smart move as the wallet would enable CRED to drive repeat transactions through its own payment instrument,” said one of the entrepreneurs who doesn’t want his name mentioned in the article.
Parfait Finance and Investment
In November 2021 Kunal Shah acquired a non-banking finance company, Parfait Finance and Investment. RBI has approved this acquisition and it will help the company to extend its lending services to its users.
This acquisition is part of Kunal Shah’s plans to provide a range of financial services to its exclusive Cred community. The company is already providing loans through a partnership with IDFC First Bank.
The company has also launched Cred Mint by partnering with LiquiLoans, an RBI-registered P2P non-banking lender. Cred Mint allows users to lend money to other Cred users.
The company has also applied for a payments aggregator license. Using this license Cred can process the payment of merchants with consumers online. The merchants can accept payments in the form of debit cards, credit cards, e-wallets, or bank transfers.
The payments aggregator license will help Cred to enable e-commerce on its platform.
Happay
Happay Logo
In December 2021, Cred acquired Happay, a corporate expense management platform, in a cash-and-stock deal at a valuation of $180 million.
Happay is a business expense, payments and travel management platform that manages work-related expenses for over 1 million users globally.
This deal allows Happay to work as a separate company but its employees will work closely with Cred to help the company scale its business and add new financial services for the Cred users.
The 230 member team of Happay will get all the benefits that the employees of Cred get, including its ESOP program.
“The move will bring in synergies between Cred, the majority of whose members are professionals who use it to manage personal payments across multiple credit cards, and Happay, the only unified platform for business expenses, payments, and travel bookings,” a statement by Cred said.
Happay’s in-house payments system will help the Cred users to manage their expenses on their credit cards.
“With professional expenses forming a significant portion of credit card spends, bringing professional expense management into the Cred ecosystem is a natural extension of our proposition,” Kunal Shah said.
Conclusion
As you can see Kunal Shah is making Cred future ready. The company is unveiling multiple revenue verticals in the form of house rental payments, lending and wallet payment business along with e-commerce.
These acquisitions show us that Cred in the future might become a banking institution for its exclusive users. It will make the platform an irreversible ecosystem for its exclusive Cred community.
FAQs
How many startups Cred has acquired?
In total, Cred has acquired 3 startups. HipBar, which is an alcohol delivery and payment startup, Parfait Finance and Investment, which is a non-banking finance company and Happay, is a corporate expense management platform which will allow users to manage their expenses on their credit cards using the Cred app.
Is Cred approved by RBI?
The services that Cred offers to its users do not require the approval of RBI. The credit score of the users is verified by a credit rating agency which is also authorized by the RBI.
Is Cred a unicorn startup?
Cred entered the unicorn club in 2021 after raising $215 million in funding, at a post-money valuation of $2.2 billion.
Covid-19 shook the economies of the whole world. Not just the countries that are developed suffer but also the countries that are developing and are already poor. This shock was instant and the world market crashed as soon as the pandemic hit the world.
Businesses all over the world that did not have stability got dissolved in the storm and the remaining were absorbed by big businesses. From that time to the current time, all efforts have been to revive the market. There was a lack of funds all over the world, which the government and businesses tried to fill.
As the Covid-19 pandemic curve flattened, and the markets got to their normal workings, the world saw a sign of relief. Then, Russia attacked Ukraine and we all witnessed another unstable time.
All of that happened in the past two years and all that was balanced by the efforts of some entrepreneurs all over the world. Money was an important asset in these times. Banks worked overtime to get money into the hands of people. Many banks’ growth staggered due to the implementation of no work in the sector. Since then every bank has been trying to cope with all the unemployment and money problems in the market.
In recent news one of the most popular banks in India decided to merge itself with another entity to gain more power. The bank was none other than HDFC bank, which is among the biggest banks in the economy. This article tries to cover everything about the news on the HDFC merger with another HDFC entity. Let us see in close detail what the news meant in this case.
HDFC bank limited is an Indian private banking company that deals in all sorts of financial services. It is headquartered in Mumbai. HDFC Bank is India’s largest private bank in terms of assets. HDFC bank is also the tenth largest bank in the world in terms of market capitalization as of April 2021.
It is also the fifteenth largest employer in a country as big as India which nearly employs 120,000 employees. It is also the third-largest company by market capitalization ($122.50) billion on the Indian stock exchanges. All and all, HDFC is a big deal in the Indian economy market.
HDFC Merger with HDFC Bank
The HDFC-HDFC merge was announced on 04-Apr-2022.
The news that shook the market for two days in a row now is about HDFC bank. The HDFC bank has announced a merger with the HDFC. This merger of two big organizations will be the biggest in Indian corporate history.
After the amalgamation, the parent company (Housing finance company) will merge with the banking arm of the company, which is HDFC Bank.
The rumors of this merger happening have been recorded for a long time now. The merger has been speculated to happen in the year 2014. Thus, we can see that the deal that turned into the news yesterday has been in working progress for many years.
The agreement on the merger has moreover mentioned that the parent company of HDFC, that is HDFC will sell some proportion of its loans to the bank every quarter. For the HDFC bank, this was previously the only touchpoint to home loans.
The parent company works in the complementary business of the home loan business and the bank arm works as a lending bank for the public. Both entities will now work together to make more sense of the business that they are into.
What Took HDFC So Long to Merge With HDFC Bank?
For the most notable past, national housing banks were regulated by HDFC. HDFC or the housing finance companies were the regulating bodies for all these sorts of banks and they had easier Norms and rules and regulations to follow, which made managing these corporate entities easier to handle and manage.
As time went by and bad loans accumulated and several other events debunked the housing finance sector, things changed. With the collapse of the DHFL and the fall of other lenders and mortgage providers like Reliance housing finance, the Reserve Bank of India came to the rescue. The RBI took over control and started to impose strict guidelines for the whole housing finance sector.
It was easy for a company like HDFC to manage itself but now, as the norms changed, it was becoming heavier to manage such a big organization. Thus, they thought to merge the HDFC limited and the private lending arm. The merger has its benefits like,
Statutory liquidity ratio
The adequate cash reserve ratio
Compliance with priority sector lending norms
The reason for the time that it took to merge both these organizations was the size of their books. HDFC limited and the bank’s book was huge and it was difficult to plan the merger which took time.
There was also some speculation about the person who will guide the merging body. It was long in the works and it finally is seen to have settled a little. There will be many benefits from the merger like the cost of capital is going to be lower due to the synergy with which the company will operate.
Another good aspect is that interest rates will be low they will be the lowest as compared to some past decades. As the companies, HDFC and HDFC bank have a large stock of liquid assets in their inventory, they will provide a good financial backbone to both entities.
Benefits of the HDFC and HDFC Bank Merger
The news was not enough to set up the theme of reason. Here we will be listing the benefits that the bank will be seeing in the future and the reason why they are looking positively for a merger in the home loan and the bank of the same parent organization. Let us see how the merger is going to be beneficial and the normal benefits of a merger first.
Safety and Profitability
A merger can be very beneficial and it can secure the resulting organization to a great extent which ensures safety and profitability. A merger lets the existing shareholders reorganize the shares of the entity and make a better arrangement for the resulting entity.
Stronger Entity
Another reason for a merger can be that the resources of both the companies and entities add on and they become stronger as an entity. Many companies also enter into a merger or amalgamation to enter new markets to diversify their portfolio of products which will enhance the profitability and profit-making capability of the company.
Other ways companies want a merger is to get some assets from other companies which would have taken much time to buy or set up in their organization.
Taxes
Merging with another company also helps many times, saving tax by lowering the tax liability that is generated for every company. A merger can also be used to eliminate competition between two entities that work in the same sector of products and are fierce in their quality controls department.
By the way, companies like these can work towards the same goal of profitability with more strong arms and assets. This merger will also help in better planning and utilization of all the financial resources that both the companies entail.
The HDFC amalgamation has a lot to do with these above-listed benefits. Apart from the benefits listed above, this merger will have more unsaid benefits like,
Benefit to Investors
The amalgamation between the parent organization and the banking division or arm is going to persuade more investors to stay invested in this joint venture. This move of merging will provide synergy to both the individual entities and will help foreign investors give more abundance to invest into.
High EPS
The merger or the amalgamation will also help in increasing the EPS of the bank. EPS here refers to earnings per share and is a financial metric to judge a company. In normal circumstances, a company with a high earning per share is considered more investing worthy than a company with a low earning per share (EPS).
Stock Price
Another small-term benefit for both entities was that the stock of both companies rocked on the stock market. The stock of HDFC bank closed at a 10 percent higher rate, which valued the private commercial bank at a valuation of 9.2 lakh crore. On the other hand, the stock of HDFC which is a housing finance company rose about 9.2 percent and landed the company at a valuation of almost 5 lakh crores.
HDFC Bank and HDFC Limited Share Price
These were some of the most noticeable benefits that Both the merging companies will get if they work in synergy. After the IL&FS crisis, that happened in 2018, the apex bank of India, that is the Reserve Bank of India has been forcing NBFCs or Non-Banking financial institutions to be more of a bank.
According to the rules of the Reserve bank of India, they are mandated to set aside a good chunk of money as reserves to ensure precaution against thefts and frauds. This made managing NBFCs a little harder and more challenging.
HDFC Chairman Deepak Parekh admitted that the bank-like regulations for NBFCs were the final nudge for the merger and it was the core point that triggered this big sort of a merger between the parent organization of HDFC and the private lending arm of HDFC.
HDFC chairman Deepak Parekh said shareholders of HDFC will get 42 shares of HDFC Bank for every 25 shares held. HDFC’s 26% stake in HDFC Bank will be extinguished as per the terms of the merger. HDFC Bank will be 100% owned by public shareholders, with existing shareholders of HDFC Ltd owning 41%.
“Change is inevitable, but is welcome when it is beneficial to all the stakeholders. The merger not only makes the combined entity strong enough to counter competition but makes the mortgage offering more competitive,” said Parekh.
All these reasons enlist the core set of reasons which led HDFC to merge with its private lending arm HDFC bank and is set to become the biggest merger in the history of Indian corporate history.
The current status of HDFC is worth a watch. The private lender department or the HDFC bank’s loan book now stands at about 12 lakh crore. One of the current goals of the banking arm is to naturally jump to 18 lakh crore and this is not an easy task.
The merger will help in adding resources, both financial and synergic. This task will involve some tight arrangements between profitability, asset quality, and the growth of the organization.
This is another benefit that is often unlisted in this famous merger. Roping in the parent organization of HDFC will help the banking arm get some relief from the tight arrangements of its books. It will be an easier and more economical option for the entity.
Another aspect of the merger can be seen in the private loan lender participant in the amalgamation. The bank, whose total value of home loans stands up at about 11 percent, will jump and magnify to 33 percent.
The other effect of the merger will be that it will make HDFC bank the second largest bank in India. It is a great feat for a private lender like HDFC and is further expected to increase the value of the lender. While the space between the HDFC Bank and State Bank of India would be around 6 to 7 lakh crore.
ICICI Bank on the other hand would be a distant third in the order, that too with a gap of over ₹10 lakh crore. Thus, the position of the HDFC Bank is quite sure to get better.
“Change is inevitable but is welcome when it is beneficial to all the stakeholders. The merger not only makes the combined entity strong enough to counter competition but makes the mortgage offering more competitive,” said Deepak Parekh who is the current HDFC Chairman.
Over the years, HDFC Bank has outgrown its parent both in terms of valuation as well as asset size. “The proposed merger will benefit the economy in many ways. A larger balance sheet and a larger capital base will allow a greater flow of credit into the economy,” said Parekh.
If we look at the Definitive data, it will mark the largest banking sector M&A globally since April 2007. S&P Global Ratings said the deal would create an entity twice the size of ICICI Bank.
Impact on HDFC Mutual Funds
Before the merger, HDFC limited and the HDFC bank had about 5.66 percent and 8.43 percent share in the Nifty 50 which was a big anchor for both organizations. Now, after the merger, their combined efforts of merging the organizations into one single entity have resulted in a share of 14 percent in Nifty 50.
However, a rule states that exposure for a single stock cannot exceed the 10 percent cap in a mutual fund scheme portfolio, and this merger as we can see breaks the limit.
As a result, mutual funds may have to remain underweight on the stock and that will lead to its repercussions. One of the repercussions is that the fund managers will not be able to benefit from the outperformance of the merger, which can turn out to be a dealbreaker for many managers.
Unless the weight of the stock lies under the cap of 10 percent, according to the rule, these mutual funds are expected to underperform the market.
Swap Ratio of HDFC
What is the swap ratio? The meaning is hidden in the words given above. Swap means to take part in the exchange for something. More formally, a swap ratio is a ratio, which is the exchange rate of the shares of the company that goes and forms a merger. This ratio is calculated by the valuation of various assets and liabilities of the merging companies.
In the case of the HDFC parent organization and the HDFC Bank, the swap ratio will be somewhat tricky. The merger has a lot of complexity and it was speculated to be in process for about a decade now.
First, the regulatory body will have to give a nod to the HDFC group to set the merger in a running state. After that, the process could take about 14 to 18 months and with this data, the merger process is expected to be complete by the end of the financial year 2021.
The swap ratio will look like this, 1:1.68. That can be interpreted as, for every twenty-five shares held in the HDFC limited (the parent organization), Forty-two shares of the bank will be allotted.
Cost Optimisation of HDFC
One of the major benefits of a merger is cost optimization. In this scene, it is expected that the cost will be optimized, but in the long run. As two big organizations join hands to operate in synergy or harmony, costs are mostly expected to go down.
This is also expected in the HDFC case too. However, as the organizations are big and strong, cost optimizations will happen in the long term. It will take some time for the cost optimization to show and reflect.
Some experts are also speculating that if the merger worked in a short span and got established, it will be a drag on the HDFC bank. It means that if the merger is established and started working together by the end of the financial year 2025, then it will drag the costs of HDFC Bank.
The cost of statutory reserves is increasing and the home loan segment is not too strong in the short period. As both are getting merged, they are expected to generate a net interest margin of four percent. HDFCs bank books might not look good in the initial years of operations, as the merger turns out fresh but it is expected to benefit in the long term.
So what will be the result of the merger? The answer is hard to say, as we should try to look long term but we can see what the results will be in the short term of time. The stakeholders or the investors of HDFC limited will get shares of the HDFC bank.
This is good news for all the investors of HDFC Limited as they will get shares of HDFC bank, and it is a good deal overall. All these are the result of mergers happening in two big entities in India, HDFC limited and the private banking arm of the same organization, HDFC Bank.
This merger is said to be the biggest merger in the history of corporate mergers in India. It will be a benefit to both the participating organizations, HDFC limited and the HDFC bank. In these times of uncertainty, mergers like these can be a big relief to the economy.
FAQs
Which bank is merging with HDFC Bank?
HDFC Ltd is merging with HDFC Bank.
When did the HDFC merger start?
The HDFC merger was started officially on April 04 2022 by the announcement made public by the officials.
Who is the founder of HDFC bank?
HDFC Bank was founded back in 1977 by entrepreneur Hasmukhbhai Parekh.
What happens after the HDFC merger?
There will be many changes noted after the merger of HDFC-HDFC bank. Changes like investors of HDFC Limited will get 41 percent shares in the merged bank. On the other hand, the shareholders of HDFC Bank will get access to the loan department of the company.
IndiaMART is a Noida-based e-commerce platform that is involved in B2B sales of various products and services in the country. It connects buyers with suppliers of all scales (SMEs, Individual suppliers, large enterprises). IndiaMART has thelargest online marketplace for B2B businesses in India. The company claims to have a 60% market share with 143 million buyers, 7 million suppliers and 80 million products and services.
Founded in 1996 by Brijesh Agarwal and Dinesh Agarwal, IndiaMART was started to help customers in the Delhi-NCR region with website directories. Later, the company grew to a great height with various rounds of funding. IndiaMART went public in 2019 and became the first online B2B company to do so.
IndiaMART has invested around Rs 900 crores in 13 startups since April 2021. This online B2B company has made only a few investments and acquisitions before 2021. Here is the list of all the startups funded and acquired by IndiaMART so far.
Startups Acquired by IndiaMART
Following is the list of startups acquired by IndiaMART over the years:
IndiaMart perrformance shared by Founder of IndiaMart – Dinesh Agarwal
RealBooks
RealBooks – Startup acquired by IndiaMart
RealBooks is an accounting software developed by Adansa Solutions Pvt Ltd. It helps clients to manage their businesses in different locations, create customized invoices, manage inventory, bookkeeping, voucher verification and many more. It serves as a complete package for accounting solutions.
IndiaMART invested a sum of Rs 13.75 crores in RealBooks for a stake of 26.01%. This investment was made indirectly by IndiaMART through its subsidiary Tradezeal.
EasyEcom
EasyEcom – Startup acquired by IndiaMart
Edgewise Technologies Private Limited developed a software named EasyEcom to provide inventory and warehouse management solutions to merchants. This SaaS tool helps traders to locate, track and manage inventories across various sales channels. EasyEcom also automates back-end functions like tracking payments from shipping and returns of inventories.
A sum of Rs 13.35 crores was invested by IndiaMART in return for 26.01% of shares of EasyEcom. This acquisition was made through Tradezeal Online Private Limited.
Aerchain
Aerchain – Startup acquired by IndiaMart
Aerchain is a software that helps its customers with the procurement of goods and services. It was developed by Agillos E-Commerce Private Limited. Aerchain helps businesses in simplifying their Source-to-Pay (S2P) process. Its AI automates procurement and finds the right supplier with great deals and quality.
IndiaMART acquired 26.23% of the shares in Aerchain for an investment of Rs 26 crores. This investment was made through Tradezeal, the wholly-owned subsidiary of IndiaMART.
Busy Infotech
Busy Infotech – Startup acquired by IndiaMart
Busy Infotech is a software platform that provides accounting services and solutions to companies. This software also offers services like GST filing, return filing, TDS, TCS, invoicing, inventory, and customer management. BUSY is a simple, easy-to-use and highly flexible tool that helps in managing the business as a whole.
IndiaMART made a huge investment of Rs 500 crores to acquire Busy Infotech. 100% of shares of Busy Infotech were purchased by IndiaMART for the said amount thus making it a wholly-owned subsidiary of the company.
Fleetx Technologies
Fleetx – Startup acquired by IndiaMart
Fleetx is a software that helps businesses with the management of freight and fleet. All the logistical operations are digitized by this tool. This helps to ensure the safety, stability and security of both the logistics and the vehicles. Businesses and operators can also keep track of their fleet’s movements as well as the maintenance needs through Fleetx.
IndiaMART invested Rs 91.42 crores to acquire 16.53% shares from Fleetx Technologies.
Livekeeping
Livekeeping – Startup acquired by IndiaMart
Livekeeping is an accounting application that helps businesses to access, check, track and share information on sales, payments and other business-related activities. This software was built by Finlite Technologies Private Limited. Livekeeping can also integrate the existing on-use accounting software, like Tally, into its application. This automatically syncs the data on the user’s device and gives a real-time view of business operations.
IndiaMART is a major shareholder in Finlite Technologies Private Limited. The company procured 51.09% of shares in Livekeeping for a sum of Rs 45.98 crores.
Reserve Bank of India took up an initiative named Trade Receivables Discounting System (TReDS) to facilitate and help MSMEs. M1xchange created a platform using this initiative as a base for its operation. This startup has collaborated with various banks to help MSMEs to obtain finances with Trade Receivables.
IndiaMART invested Rs 32.43 crores in Mynd Solutions Private Limited (M1xchange) in return for 7.70% of shares in the company.
Bizom
Bizom – Startup acquired by IndiaMart
Bizom is a software company that is involved in the designing of mobile apps and websites for businesses. Their area of concentration includes businesses with distributor management and sales force & supply chain automation.
There were two investments made by IndiaMART in Bizom for an aggregated amount of Rs 21.4 crores for 15.98% shares in the company.
Industry Buying
Industry Buying – Startup acquired by IndiaMart
Industry Buying is involved in the online trading of industrial supplies like hand tools, abrasives, power tools, robotics, etc., This e-commerce site sells equipment from various categories and diverse sectors of business. Industry Buying is a brand developed by IB Monotaro Private Limited.
IndiaMART has acquired 26% of Industry Buying’s share by investing Rs 104.2 crores.
Legistify
Legistify – Startup acquired by IndiaMart
Legistify is a SaaS platform that helps businesses to manage and keep track of their legal workflows and activities. This online tool serves as a medium to connect people or businesses in need of legal support with lawyers across the nation. One can also track their litigation, manage notices and perform other related activities in Legistify.
An indirect acquisition was made by IndiaMART through its subsidiary Tradezeal in Legisify. There were two investments made, one of which was made in March 2021 for Rs 1.30 crores and another in January 2022 for Rs 7.5 crores. IndiaMART holds 11.30% of shares in total in Legistify.
10 Times
10 Times – Startup acquired by IndiaMart
10 Times is an event management software that brings together professionals and people at the right place and time. Their FLOOR software program can organize and hold virtual events. They take care of everything like bringing in speakers and sponsors, recording the sessions, boosting the network with AI and many more.
Earlier, 10 Times was a wholly-owned subsidiary of IndiaMART. But in 2020, IndiaMART sold 70% of its stakes in 10 Times and now holds it as an associate company with 30% of its share capital.
Vyapar
Vyapar – Startup acquired by IndiaMart
Vyapar is another accounting software to receive investments from IndiaMART. It offers simplified accounting solutions to small businesses and helps them with invoicing, vouchers and inventory management. Vyapar makes these processes easy, quick and simple.
IndiaMART had already made an investment in Vyapar in 2019 that amounts to Rs 31.2 crores. Now, to develop the business further, the company made another funding of Rs 61.55 crores in this accounting startup. An aggregate of 27% of the shares is held by IndiaMART in Vyapar.
Shipway is another logistical SaaS platform that was developed with the goal to automate shipping operations for small businesses. It offers a better customer experience in terms of tracking, return management, fraud detection, etc., Shipway automatically sends a delivery notification and ensures better workflow management.
IndiaMART, through its subsidiary Tradezeal, invested Rs 18.2 crores in Shipway Technology on 28th April 2021.
Super Procure
Super Procure – Startup Acquired by IndiaMart
Right from order placement to delivery, Super Procure digitizes every step of the shipping process. It finds the best freight source with optimum rates through transparent auction or bidding. Super Procure offers a real-time view of each and every event throughout the shipping operation. This software was developed and managed by Truckhall Private Limited.
An indirect investment of Rs 10.4 crores was made by IndiaMART in Super Procure. The company overall holds 25.02% of shares in Truckhall Private Limited.
Zimyo
Zimyo – Startup Acquired by IndiaMart
Zimyo is a Human Resource Management software developed by Zimyo Consulting Private Limited. This SaaS tool handles everything right from hiring new recruits to handling payroll, performance and attendance management.
IndiaMART has invested Rs 17.01 crores in return for 10% of share capital in Zimyo.
Tradezeal
Tradezeal Online Pvt Ltd. is an enterprise software company that was incorporated in May 2005. It has its registered office in Central Delhi. Tradezeal offers consulting and other software publishing services to its customers. This company is a wholly-owned subsidiary of IndiaMART. A few investments and acquisitions made by IndiaMART were indirectly made through Tradezeal.
Tolexo
Tolexo – Startup Acquired by IndiaMart
Tolexo is another wholly-owned subsidiary of IndiaMART. It is a platform that helps businesses by providing technology, payment services, customer support and other requirements for a seamless online shopping experience. This company claims to have been developing a futuristic infrastructure by combining both online and offline setups for a perfect e-commerce solution.
HelloTrade
Hello Trade – Startup Acquired by IndiaMart
Hello Trade is an online trading company that has been in existence for the past 14 years. IndiaMART is the parent company for Hello Trade. The founders of IndiaMART, Dinesh and Brijesh, serve on the board of this company. Hello Trade Online Pvt Ltd. is a company limited by shares and has its registered office in Delhi.
Pay With Indiamart
Pay With Indiamart is an online payment services company. It offers a safe and secure platform for payments along with services like buy-now-pay-later, EMIs and multiple payment options for its customers. The payments for purchases and sales through IndiaMART can be made through this online service. Pay With Indiamart is a private limited company and is a subsidiary of IndiaMART.
Conclusion
More than a dozen investments in less than a year clearly explain that IndiaMART was sure about investing in startups after receiving a fund of Rs 1070 crores in 2021. Right from the beginning, their investments were diverse in different sectors of business like accounting, logistics, automation, supply chain, etc., All these acquisitions by IndiaMART are sure to benefit not only the company but also the corresponding startups.
Startup acquisition seems to be a great trend for many big companies. The companies or the startups that have made it big likes to indulge themselves in the game of acquisitions.
So, when a small startup is doing well in the market but does not have the capability to sustain that, bigger companies tend to take control of it. However, this does not mean that the big companies intend to turn them into successful businesses.
Razorpay is one of the startups that has made a huge success and now has jumped into this field of acquisitions. Over the years, it has acquired startups like TERA Finlabs, Opfin, and more.
It is India’s top and leading company founded in 2014 by Shashank Kumar. Along with him, Harshil Mathur is the co-founder. The company is based in Bengaluru, Karnataka.
It allows you to use any payment mode. This includes debit and credit cards, UPI, mobile wallets (Mobikwik, JioMoney, etc.) multi-currency, and more. It helps businesses and traders to automate bank transfers, bills, checks, salaries, etc.
It is a digital system of payments that acts as a link between many apps. The decreasing role of debit and credit cards has given rise to the idea of auto-payments. In this regard, Razorpay offers features like UPI autopay.
It has administrative features like reporting, payout time, and dispute resolution. Security features like two-factor authentication, fraud protection tools, and more.
Along with these, other features include E-commerce integration, application programming interface, accounting software integration, etc.
About Razorpay
List of Startups Acquired by Razorpay
Startup Acquisition is a process where bigger companies buy an entire small startup or take the maximum authority over it by buying most of its shares or equity. This usually happens, when large companies want to remove their competition in the market.
Also, many startups begin their businesses with the hope of ultimately selling them in the future. This is because, after a point of time, the growth of certain startups becomes stagnant. So, going under the shelter of big companies help them to stay afloat and get better exposure.
Razorpay is one of the most noted companies in India. This payment platform made online transactions super easy and efficient. Its efficiency, great strategies, and right funding at right time made it a Unicorn startup in 2020.
Over the years of its existence, it has made a total of five acquisitions. It has also made investments in NextPay, Shiprocket, and MSMEx.
The following is the list of startups acquired by Razorpay:
IZealiant Technologies
Founded: 2015 Acquired: March 2022
This is the most recent acquisition made by Razorpay. It is a Pune-based fin-tech startup founded in the year 2015 by Prashant Mengawade. It provides for payment transaction processing by banks, traders, and processors.
The startup provides application programming interface empowered, cloud-ready, and mobile-first payment processing products. The businesses are able to receive, process, and distribute the payments smoothly with this startup.
It offers features like multi-factor authentication, 3D secure 2.0, E-commerce acquiring, Mobile POS and Micro ATM, and more.
Razorpay announced the acquisition of the startup on the 16th of March, 2022 for an undisclosed amount.
It is a Malaysian direct debit payment startup founded in the year 2018 by Zac Liew and Steve Kucia. The startup is designed to aid and ease the collection of recurring payments.
The startup tends to make settlements between customers, merchants, and their banks. It manages transactions and also collects cash receipts. It ensures all this by building technology on top of the payment framework.
It offers features like card payments, direct debit, payment collection, payouts, management of subscriptions, billing, and more.
Razorpay announced the acquisition of this startup on the 8th of February, 2022. It acquired the startup for an amount between 19 to 20 Million dollars.
TERA Finlabs
Founded: 2017 Acquired: July 2021
It is a startup that offers businesses financing solutions. It was founded in the year 2017 by Pradeep Rathnam and Harshil Mathur. It is based in Bengaluru. It provides technology, risk, and capital solutions.
This risk technology startup offers digital lending solutions for the organizations of finance and customer technology companies.
It is known for its great specialty in digital lending. It specializes in data-driven risk management, credit underwriting, and capital solutions.
Razorpay announced the acquisition of the startup for an undisclosed amount on the 19thof July 2021.
Opfin
Founded: 2017 Acquired: November 2019
It is a payroll management startup founded in the year 2017 by Anuj Jain. It is based in Gurugram. This enables the customers to custom-make their payment workflow to be as hands-off or hands-on as they want.
The startup is super helpful for small businesses. Its interface is perceptive and simple to use. This discards irrelevant jargon and unwanted steps.
It offers a wide variety of features like compliance management, attendance management, approval process control, application programming interface, attendance tracking, and more.
Razorpay announced its acquisition of it on the 23rd of November, 2019 without disclosing the amount.
It is a fraud detection startup founded in the year 2016 by Shashank Kumar. The startup rules out scams and frauds in digital, e-commerce, and banking transactions by using Artificial Intelligence. It is based in Gurugram.
The startup provides automatic detection and prevention solutions by using AI, big data technology, location profile, and device fingerprinting.
It offers features like risky order profiling, verification of shipping addresses, model customization, intelligent automation, and more. This helps to cut fraud, keep the rate of interest in check, and improve success and profitability.
Razorpay declared its acquisition of the startup on the 5thof August, 2019. This was the first acquisition made by Razorpay for an undisclosed amount.
Conclusion
Over its eight years of existence, Razorpay has surely made great progress and created a significant name for itself in the market. It has not only made itself successful but has also helped various other businesses by making their processes easy and efficient.
Since its birth, it has made a total of five acquisitions. All these startups have helped Razorpay to become even more skillful than it was on its own. These have strengthened the company more in the fields of banking services, neobanking, payout processing, e-commerce fraud detection, and more.
FAQs
What are the startups acquired by Razorpay?
Razorpay has acquired 5 startups:
IZealiant Technologies
Curlec
TERA Finlabs
Opfin
ThirdWatch
Who is the founder of Razorpay?
Shashank Kumar and Harshil Mathur are the founders of Razorpay.
Day by Day, the thriving International Business Machines corporations have taken the spotlight, by acquiring top-notch on-demand startups all over the world. Since the incorporation of IBM, the American Technology MNC has operated in over 177 countries through merging, acquisition, and absorption with other reputable companies.
Besides, IBM accomplished success through acquiring startups across the world and developed the brand name by rendering the best services to the people. Generally, International Business Machines (IBM) is an American-based technology company, which was founded by Charles Ranlett Flint, who merged his computing-tabulating recording company with other four major corporations in 1911, New York.
Initially, the company set the objectives of manufacturing machinery such as slicers, time recorders, punched cards, etc. for sale & lease. Subsequently, 3 years after Thomas J.Watson joined CTR with an ingenious mind in increasing the sale by underscoring customer service and enlarged the production scale, as well as operations overseas. By 1950, IBM became foreign operations by enabling technical services to the people.
For instance, the company came up with the first practical AI- IBM 701, a mass-produced computer with floating-point arithmetic hardware, in 1956. Moreover, IBM acquired many startups from 1912 to now to prosper universally.
In other words, IBM is a multinational corporation that manufactures and sells computer hardware, middleware, and software, as well as hosting and consulting services in a variety of fields, from mainframe computers to nanotechnology.
here is the list of IBM acquisitions made from its incorporation to this time on.
The very first company acquired by IBM was the American Automatic computing scale company. It is considered the world’s first automatic computing scale and was renamed a Computing-tabling-recording company in 1924.
CTR (Computing-Tabulating-Recording) Company
This company was founded in 1911 by Charles R.Flint and was a holding company manufacturer of record-keeping and measuring systems enterprise.
International Time Recording Company of Canada
Willard & Frick Manufacturing Company along with, Bundy manufacturing, and other two companies amalgamated and formed ITR in 1911.
Computing Scale Co. of Canada
Formed in 1901 by Charles R.Flint. Computing Scale Co. became the fourth company to be acquired by IBM. The company was a manufacturer of record-keeping and measuring systems.
Bundy Manufacturing Company
An American manufacturer of timekeeping devices, which was founded in 1889 and became a part of IBM in 1911.
1921
Pierce Accounting Machine Company
IBM acquired Pierce Accounting machine company in 1921, an asset purchase. the company provides business advisory & accountancy services.
Ticketograph Company
This Chicago company became a division of IBM after the acquisition in 1933. The activity of the Ticketograph company was a device that used a coupon system of wage payments to control job labour costs and manufacturing operations.
1923
Dehomag
It is a German-American inventor of the technology of punched cards, which became a subsidiary of IBM and was located in Germany before as well as during WWII as a monopoly company.
Companies Acquired by IBM in 1930 – 1949
1932
National Counting Scale Company
IBM acquired the company on 1st January 1932 for an undisclosed amount. The company is one of the famous makers of counting scales.
1933
Electromatic Typewriters
It is a series of electric typewriters company, which was acquired by IBM starting in the mid-1930, for using their fixed carriage & type ball in IBM Selectric.
1941
Munitions Manufacturing Corporation
It is a profit organization that renders Electromatic Model 04 electric typewriters, which was later acquired by IBM.
Companies Acquired by IBM in 1950 – 1969
1959
Pierce Wire Recorder Corporation
This company was founded in 1920 as Radiotechnic Laboratories, which made wire recorders for the U.S Army in the 1940s. On 15th August 1959, IBM bought the patents and assets of the Pierce Company and later the company changed its name to IBM as its dictation division.
1964
Science Research Associates
It is a Chicago-based publisher company, which was established in 1938, was purchased by IBM in 1964, and later acquired by McGraw-Hill Education in 2000.
Companies Acquired by IBM in 1970 – 1989
1974
CML Satellite Corporation
This company was renamed Satellite Business System, which was formed by IBM, Aetna, and COMSAT on 15th December 1975. CML was established to build terrestrial network facilities and later IBM sold the company to MCI Inc.
1984
ROLM
IBM partnered with a technology company, which was founded in 1969, and later IBM sold half of the assets to Siemens AG in 1989, In the aftermath of 1998, the ROLM corporation Defunct.
1986
RealCom Communications Corporation
IBM acquired RealCom Communication Corp. in 1986. It is a technology services company based in Texas, United States. It provides telecommunications and technology solutions to companies.
Companies Acquired by IBM in 1990 – 1999
1993
CGI Informatique (France)
CGI Informatique, which IBM acquired in 1993, operated autonomously until 1996 when it was gradually integrated by IBM, nation by country until it was completed in 1999.
1994
Transarc Corporation
It was a private Pittsburgh-based software company, which was bought by IBM in 1994 and became a part of IBM Pittsburgh in 1999.
1995
Lotus Development Corporation
It is an American-based software company established in 1982 and acquired by IBM and now became a parent company of HCL India. IBM purchased the company for $3.5 billion.
Information Systems Management Canada (ISM Canada)
It is a Canada-based & subsidiary of Kyndryl, Information technology services company, founded in 1973 and later acquired by IBM in 1995 in producing IBM System/370 Model 168.
K3 Group Ltd
K3 is a company that specializes in business technology. In the supply chain market, the company offers integrated business solutions such as enterprise resource planning software, customer relationship management software, e-commerce, and managed services, which was purchased by IBM in 1995.
1996
Wilkerson Group
Wilkerson Group is a high-impact, real-time consultant and coach who helps organizations and individuals make significant success, which later became a part of IBM in 1996.
Tivoli Systems
This company was launched in 1989, producing Tivoli software, and became a parent organization to IBM.
Data Sciences
IBM bought Thorn EMI Software, Datasolve, and the Corporate Management Services Division of Thorn EMI(Formerly known as Data Science Ltd) for $95 million in 1996.
Object Technology International (OTI)
This company was founded in 1988 and later acquired in 1998, where the VisualAge range of Smalltalk and Java development tools which were developed by OTI in collaboration with the IBM development lab in Cary, NC, and finally resulted in the open-source Eclipse tool platform and integrated development environment (IDE). Additionally, OTI was disclosed in 2003.
Cyclade Consultants
It is a legal plus consultancy management, which was bought by IBM in 1996. The company advises both major industrial enterprises and SMEs.
Professional Data Management, Inc. / LifePRO
LifePro is a leading provider of life, annuity, long-term care, and securities-based insurance to financial professionals across the country, which was again purchased by IBM in 2021.
1997
Software Artistry
IBM obtained Software Artistry for $200 million in 1997 for its best-known software programs. It is an Indianapolis-based software company that provides strategic and automated support solutions.
Unison Software
It is a profit organization, which was established in 1983, as a Procurement, supply chain, and contract management software provider to federal government departments and government contractors.
Dominion Semiconductor (Manassas, VA)
Dominion Semiconductor (Manassas, VA) is formed as a 50/50 joint venture with Toshiba to manufacture 64MB and 256MB DRAM chips.
1998
CommQuest Technologies
CommQuest is an electronic components manufacturer that Integrated wireless communication chipsets, systems, and related software are designed, developed, and marketed to provide the basic functionality of wireless communication subscriber equipment.
DataBeam Corporation, Lexington, KY
The company is a provider of real-time collaboration and distance learning software and developers platforms, which was acquired by Lotus Development Corp, a subsidiary of IBM.
Ubique
It is an Israel-based technology company that provides outsourcing and consulting services to its customers.
1999
Dascom Technologies (USA)
Dascom is a security firm based in Verona, Virginia, the United States founded by Greg Clark. It was acquired by IBM in 1999.
Mylex Corporation
The company is known for manufacturing high-disk performing technology and network founded in 1993. The company manufactured wood television and radio cabinets.
Sequent Computer Systems
It is a computer-based company, which produces multiprocessing computer systems, launched in 1988, and defunct in 1999.
It is a business strategy consultancy company, which was bought on 7th July 2001 by IBM. IBM acquired Mainspring for $80 million.
Informix Corporation
It is a software company, which was a relational database software developer for machines running Unix, Microsoft Windows, and Apple Macintosh operating systems.
2002
CrossWorlds Software
It is a business service provider company, founded in 1996 and renders Corporate integration software from CrossWorlds Software unifying and expanding business operations. Its business integration solution consists of ready-to-use applications.
Meta merge
This company was established in 1999, is a critical enabler for IBM security solutions, and specializes in directory integration technologies, including meta-directory utilities, and was acquired by IBM on 25th June 2002.
Trellisoft
Trellisoft was founded in 1999. This company transforms your business into Artificial Intelligence, which helps to solve all your business challenges. The company provides business intelligence, digital marketing, mobility & enterprise software solutions.
Holosofx
It is a business process reengineering and consultancy service, which was founded in 1990. The company provides business integration software applications.
PricewaterhouseCoopers
It comes under the MNC PricewaterhouseCoopers for business consultancy and other technology services. It is the second-largest professional services network in the world.
Access360
Access360 is a simple and effective solution for any company’s Resource Provisioning Management (RPM).
EADS Matra Datavision
It was founded in 1979, which is an integrated business consultation unit. The company developed design software applications. It was acquired by IBM in 2002.
Tarian Software
The Tarian eRecordsEngine is an embedded electronic recordkeeping technology for business application software developed by Tarian Software.
2003
Rational Software Corporation
This was founded by Paul Levy and Mike Devlin in 1981, to provide tools to promote the adoption of modern software engineering approaches, particularly explicit modular architecture and iterative development.
Think Dynamics
It was established in September 2000, which creates software that integrates genuine Utility Computing into contexts with different e-Business Internet infrastructures.
Information Laboratory
It’s a Laboratory Information System (LIS) that collects, processes saves and maintains data from all phases of medical procedures and tests.
CrossAccess Corporation
IBM purchased this company on 17th October 2003, for data-handling services, and plays as a provider of infrastructure software that allows businesses to access data housed in mainframe databases and make it accessible to new business applications.
Green Pasture Software
This organization looks after Document management software from the company aids in the organization, development, and management of papers, allowing businesses to modify and manage various documents.
2004
Trigo Technologies
Manufacturers, distributors, and retailers use Trigo Technologies’ product information management solutions.
Daksh e-Services
Daksh eServices is an Indian outsourcing firm that provides a variety of web-based customer support solutions and is also the first Indian-based company to be acquired by IBM.
Business Continuity Services unit of Schlumberger
The Business Continuity Services section of Schlumberger, situated in London, is one of Europe’s major workplaces in the business continuity and disaster recovery industry.
Candle Corporation
This company was launched in 1977, as the Developer of mainframe management software for enterprise infrastructure deployment and administration.
Alphablox Corporation
AlphaBlox is the only open Web-based platform for eBusiness analysis applications, allowing businesses to examine their data, which was inaugurated in 1996.
Cyanea Systems
Cyanea Systems was established in 2001, which makes software that analyses and manages web-based business application performance.
Venetica
Venetica is an enterprise information integration company. The company is based in Charlotte, North Carolina.
Systemcorp ALG Ltd
It is a Project Portfolio Management (PPM) software Canada-based company, which was founded in 1991 and acquired by IBM on 19th November 2004.
Liberty Insurance Services
This company provides insurance sector software and business process management solutions and was acquired by IBM for an undisclosed sum.
Maersk Data and DMdata from Maersk
This is a Danish-based company from the head branch of Maersk that provides technology services to the business.
KeyMRO
KeyMRO offers sourcing and procurement services for non-production and indirect purchases of products and services.
2005
Systems Research & Development
This company was founded in 1983 by Jeff Jonas, to develop and market business intelligence and security analytics software for commercial and government organizations.
Corio
George Still and Roger Lee founded Corio in 1998 as an enterprise Application Service Provider (ASP) that distributes and manages corporate applications.
Gluecode Software
The company was founded in 2000, that provides open-source application infrastructure. The company is based in Los Angeles and was acquired by IBM in 2005.
Meiosys
Meiosys is a company that makes computing middleware for large data centers. The company has customers in telecommunications, financial services, manufacturing, energy, and government industries.
PureEdge Solutions, Inc
PureEdge Solutions develops and sells business process management software and services based on electronic forms.
Isogon Corporation
The firm provides a cross-platform inventory, use, and contract management software suite.
DWL
It is an enterprise information integration company that renders translation solutions for your businesses. It was founded in 1996 and is based in Greater Atlanta Area, East Coast, Southern US.
DataPower Technology
The IBM WebSphere DataPower SOA Appliances are a set of pre-built, pre-configured rack-mountable network devices (XML appliances) that can speed XML and Web Services deployments while also extending SOA architecture.
iPhrase Systems
For the banking, technology, manufacturing, healthcare, and retail industries, iPhrase Technologies delivers e-business and e-service solutions.
Network Solutions
It is an Indian-based enterprise, That provides a wide range of company solutions, including website construction, optimization, social media, and online advertising, among others.
Collation
Collation is a resource mapping firm that develops service-oriented network solutions that are automated.
Bowstreet
It is a portal-based tool, and delivers portals, bundled composite applications, and distributed Web-based services with application development tools.
2006
ARGUS
Argus is a communication and system monitoring tool. Its purpose is to keep track of network services, routers, and some other network equipment. Notably, when it finds difficulties, it will send out alerts.
CIMS Lab
It is It-based financial management, that looks into the financial statements of the company, which was purchased by IBM on 20th January 2006.
Viacore
For private trade communities, Viacor provides a suite of inter-business integration services, which was founded by Fadi Chehade in 1999.
Micromuse
It is an American-based company that renders network management software services, founded in 2006 by Christopher Dawes Phill Tee.
BuildForge
BuildForge creates and sells software for building process management. The company was founded in 2001 and is based in Austin, Texas.
Unicorn Solutions
This company is a European-based that offers computer software printing services and other information-related services.
Rembo Technology
Rembo Technology is a privately held software corporation that manufactures tools that ease the process of installing and updating operating systems on servers as well as client machines like desktops and laptops.
Webify Solutions
Webify Solutions specializes in developing and marketing SOA software and services for the healthcare and insurance industries.
Global Value Solutions
The automotive, car components, metallurgical, finance, services, and telecommunications industries are all addressed by Global Value Solutions SA.
DORANA
DORANA is a software asset management tool Ubiquity that enables businesses to make intelligent software investments and decisions based on actual software use behaviour on both networked and centralized platforms.
MRO Software
The company was founded in 1968 by Bob Daniels, was a software firm that is based in Bedford. MRO software was bought by IBM on 3rd August 2006 for $739 million and defunct in 2007.
FileNet
FileNet, founded in 1982, created software to assist businesses in managing their content and business processes.
Internet Security Systems (ISS)
It offers software and services for PCs, servers, networks, and remote locations that include proactive security against attacks before they have an impact on a company’s operations.
Palisades Technology Partners
Palisades Technology Partners, LLC is a software company that specializes in mortgage finance.
2007
Consul Risk Management
Consul Risk Management International is a global provider of security event management solutions.
Vallent Corporation
Vallent Corporation is a company that works in the field of service assurance. Performance, business, and service management are all services provided by the corporation.
Softek Storage
Softek Storage Solutions Corporation is a software firm that specializes in storage management. Transparent data movement is a service provided by the company.
Watchfire Corporation
Watchfire Corporation develops and sells online risk management software and services to ensure that websites are secure and compliant.
WebDialogs
Webdialogs creates online meeting and communication solutions such as phone, video, and Web conferencing, as well as data collaboration and Web. On August 22, 2007, IBM acquired WebDialogs, Inc. for an undisclosed amount.
DataMirror Corporation
The company claims to have over 2100 commercial customers in industries such as healthcare, retail, telecommunications, and financial services and provides real-time data integration, protection, and Java database technologies. Later, in 2007, the company became a wholly-owned subsidiary company of IBM.
Quinnova, Inc
Quinnova Pharmaceuticals is a biotech firm that specializes in the development and marketing of prescription medication products.
Princeton Softech
Princeton Softech is a developer of enterprise data preservation and test data management software as well as commercial data management tools for activities including data assessment, data privacy, data classification, data storage, and archiving.
NovusCG
NovusCG is the provider of software consulting and independent enterprise storage services. IBM acquired the company in 2007.
2008
XIV
In 2002, an Israeli start-up company led by engineer and businessman Moshe Yanai developed the IBM XIV Storage System. In 2005, they delivered their first system to a client.
AptSoft Corporation
AptSoft Corporation provides a design and executive platform for event processing to assist businesses in implementing event-driven applications.
Solid Information Technology
SolidDB offers both an in-memory and a standard disk-based database, both of which have the same SQL interface and a high-availability option.
Cognos
The Ontario-based company that renders business intelligence and performance management software, was founded in 1969 and acquired by IBM on 18th January 2008.
Arsenal Digital Solutions
On-demand data protection services for servers and personal computers are provided by Arsenal Digital Solutions.
Net Integration Technology
Net Integration Technologies Inc. (NITI) is a software company that specializes in providing autonomous Linux-based server operating systems and other technology services.
Encentuate
Encentuate, Inc. was a privately held corporation situated in Redwood City, California, that was founded in Singapore in 2002. Peng T. Ong launched the company in 2001. In 2008, IBM purchased the company.
Telelogic AB
Telelogic AB was a software development company. Telelogic was established in 1983 as Televerket’s research and development department. The headquarters are located in the Swedish municipality of Malmö.
Diligent Technologies
Diligent is a pioneer in the field of enterprise-class disk-based data protection. Dedicated to overcoming the issues of data storage, protection, and management. In the year 2002, the company was established. In April 2008, IBM purchased Diligent.
FilesX
When working with z/OS data sets, Db2, CICS, IMS, or WebSphere MQ data, IBM File Manager provides configurable, user-friendly tools for enhanced file processing. IBM bought the company in 2008.
InfoDyne Corporation
InfoDyne, Ltd. produced system software and large-scale systems for United Nations organisations. In Hong Kong, the company was founded in 1991 by Filipino IT specialists.
Platform Solutions
Platform solutions combine powerful infrastructure options, a sophisticated development platform, and industry-leading services to create cloud-based solutions. IBM announced the acquisition of Platform Solutions Inc. in 2008.
ILOG
ILOG was a multinational software development firm. Pierre Haren and Greg Nuyens launched the firm in 1987. In January of 2009, IBM bought the company. It developed supply chain, business rule management, visualisation, and optimization enterprise software.
Transitive Corporation
Transitive Corporation is a manager in cross-platform virtualization, with technology that is installed on more than 17 million PCs. It was formed by Alasdair Rawsthorne in the year 2000, and its headquarters are in Los Gatos, California.
2009
Outblaze
Outblaze provided services on EMailing. It was a privately held online messaging service and collaboration service. The company is based in Hong Kong. In Jan 2009, IBM announced its intention to acquire Outblaze.
Exeros Assets
Exeros’ technology reveals hidden connections between databases, allowing users to make sense of several data sources more quickly. Its headquarters are in Santa Clara, California, and it specialises in data discovery software.
SPSS Inc
SPSS Inc. was a software company best known for its proprietary programme with the same name. Norman H. Nie created the company in 1968, and it is situated in Chicago, Illinois, United States. In 2009, IBM purchased the company.
Ounce Labs
Ounce Labs is a company that sells security software. The firm developed a software analysis tool that examines source code for security flaws and fixes them. The company was created on October 1, 2002, and is headquartered in Waltham, Massachusetts.
RedPill Solutions
RedPill focuses on creating customer value and customer-centricity. The company provides Customer Management services to the Telecom, Technology, Financial Services, and Retail verticals. The company was founded in 2000.
Guardium
IBM Security Guardium Data Protection facilitates a zero-trust safety method. It finds and categorizes sensitive data from across the organization. The company was established in 2002. In 2009, IBM purchased the company.
Lombardi
Lombardi Software was a business software firm. The company is based in Austin, Texas, and was created in 1998. They developed business process management software. IBM purchased it at the end of 2009.
2010
National Interest Security Company
For the Intelligence Community, NISC is a prominent source of new information technology, information management, management technology consulting services, and security efforts. The company was created in 2007 and is situated in Fairfax, Virginia.
Initiate Systems
Initiate Systems is a software company that helps businesses leverage and share important data assets strategically. Jeff Galowich and Ron Galowich established the company in October of 1994. Its headquarters are in Chicago, Illinois.
Intelliden
Intelliden develops Intelligent Networking software that helps businesses control, manage, and scale their networks. Glen Tindal and Dale Hecht launched the company in 2000. Menlo Park, California, is home to the company’s headquarters.
Wilshire Credit Corporation
Wilshire Credit Corporation’s main operating assets, including the Wilshire mortgage servicing platform, have been acquired by IBM’s mortgage servicing business, which will hire Wilshire’s approximately 900 employees.
Cast Iron Systems
Cast Iron Systems is a cloud-based and SaaS-based software platform that offers integration tools to large and mid-sized businesses. The company was created in 2001 and is headquartered in San Jose, California
Sterling Commerce
Sterling Commerce was an Omni-Channel Commerce software and services company. The company was created in 1975 and is based in Dublin, Ohio, in the United States. Its Parent organizations are IBM, AT&T, and Southwestern Bell Yellow Pages.
Coremetrics
Coremetrics is a company that specializes in digital marketing optimization and online analytics. Brett Hurt created the company in 1999, and it is headquartered in San Mateo, California.
BigFix
BigFix, Inc specializes in networked desktop, mobile, and server computer management. David Hindawi and David Donoho established BigFix in 1997. BigFix is a simple and easy-to-use compliance, endpoint, and security management solution.
Storwize
RAID computer data storage systems with a raw storage capacity of up to 32 PB were virtualized using Storwize systems. Storwize used to be a stand-alone data storage company. The company was founded in 2011 and was eventually shut down on February 12, 2020.
Data cap
Datacap is a computer software and services firm that creates and distributes software and services. It was established in 1988. Datacap compiles documents, extracts significant information, and educates it into downstream company operations.
Unica Corporation
Unica is an HCL software brand that includes numerous Enterprise Marketing Management components and is part of HCL Technologies. It was created in 1992 and is headquartered in Waltham, Massachusetts. Its parent company is HCL Technologies.
OpenPages
OpenPages is a software package for governance, risk management, and compliance (GRC). Scott Killoh and Warren Ondras launched OpenPages in 1990. In October of 2010, IBM officially bought the company.
Netezza
Netezza is a company that creates and sells high-performance data warehousing equipment and advanced analytics solutions. Jit Saxena created Netezza in 1999, and it is based in Marlborough, Massachusetts, in the United States
Blade Network Technologies
Blade Network Technologies manufactures Ethernet network switches for blade servers, server and storage data center racks, and other applications. The company was established in 2006 and is headquartered in Santa Clara, California. In 2010, Blade was acquired by IBM System Networking.
PSS Systems
PSS Systems specializes in enterprise discovery management software for the formal holds and anthologies industries. The company was created in the year 2000 and is based in California. PSS Systems was acquired by IBM in 2010.
Clarity Systems
Financial governance software is provided by Clarity Systems. The business was established in 1995. On October 21, 2010, IBM purchased Clarity Systems, a privately held corporation situated in Toronto, Canada.
2011
Tririga
The TRIRIGA solution delivers a comprehensive workplace management system on a single technology platform. It was a public company and was founded in 2000. Its headquarters is located in Las Vegas, Nevada.
i2 Limited
For military intelligence, law enforcement, and commercial entities, i2 Limited develops visual intelligence and investigative analysis software. The firm was established on April 9, 1990. It was acquired by IBM in 2011.
Algorithmics Inc
Ron Dembo started Algorithmics in Toronto, Ontario, which provides risk management software to financial institutions. Algorithmics was founded by Ron Dembo in 1989 and it’s based in Toronto, Canada.
Q1 Labs
Q1 Labs is a global provider of risk management, security information and event management, user activity monitors, and log management systems that are high-value and cost-effective. Q1 Labs was acquired by IBM on Oct 4, 2011.
Platform Computing
Platform Computing was a software business well known for its Load Sharing Facility task scheduling application. It was created in 1992 in Toronto, Ontario, Canada, and has departments across the United States, Europe, and Asia.
Cluster and Grid Management
Platform Cluster Manager for Power V4.2 makes scale-out and cloud computing infrastructures simple to handle. It was acquired by IBM in 2011.
Cúram Software
Cram Software is a social enterprise management software firm that also provides consulting, certification, and training. Its headquarters are in Dublin, Ireland, where it was formed in 1990.
Emptoris
Emptoris was a software company that specialized in strategic supply and contract management. Patrick D. Quirk is the CEO of Emptoris. The company was founded in 1999 and is headquartered in Burlington, Massachusetts. IBM announced a formal deal to buy Emptoris on December 15, 2011.
DemandTec
DemandTec uses data science to help retailers achieve optimal pricing, promotions, and markdowns, as well as deal management with vendor partners. DemandTec was established in 1999 and is headquartered in San Mateo, California.
Green Hat is a software testing company that operates in the cloud. Rational Integration Tester from Green Hat prevents integration issues by allowing iterative and agile development. On January 4, 2012, IBM announced the completion of its acquisition of Green Hat.
Worklight
Worklight is a software company that develops powerful mobile application platforms and solutions for smartphones and tablets. Worklight was created in 2006, and the company’s headquarters are in New York, New York.
Varicent
Finance, sales, human resources, and IT departments all benefit from Varicent Software’s incentive and sales performance management software. Marc Altshuller, the CEO of Varicent, started it in 2003. Toronto, Canada is home to the company’s headquarters.
Vivisimo
Vivisimo is a company that specialises in the creation of computer search engines. Vivisimo is a software company situated in Pittsburgh, Pennsylvania, United States, that was created on June 21, 2000. In May of 2012, IBM purchased the company.
Tealeaf Technology
Tealeaf was a firm that specialised in web and mobile analytics software. Tealeaf was started in 1999 by Robert Wenig. The corporation is headquartered in San Francisco, California.
Texas Memory Systems
Texas Memory Systems, Inc. was a company that invented and manufactured solid-state discs and digital signal processors in the United States. Holly Frost created TMS in 1978, and Dan Scheeland is based in Houston, Texas.
Butterfly Software Ltd
Butterfly Software creates software that aids in the discovery, analysis, and migration of data center infrastructures. In 2011, Butterfly Software LLP was established.
StoredIQ
StoredIQ was founded to manage the lifecycle of unstructured data information. Jeff Erramouspe, Jeff Bone, Russell Turpin, Rudy Rouhana, Laura Arbilla, and Brett Funderburg founded Deepfile in Austin, Texas in 2001. Its headquarters were in Austin, Texas, in the United States.
2013
Star Analytics
Star Analytics, Inc. is a major developer of financial automation and integration tools for EPM and BI applications. It’s a privately held company founded in 2004. Its headquarters is located in San Mateo, CA.
CSL International
CSL creates cutting-edge biotherapies and influenza vaccinations that save lives and aid people suffering from life-threatening illnesses. In 2013, CSL International was acquired by IBM.
UrbanCode
UrbanCode Deploy is a solution that allows you to automate application deployments across many environments. It’s made to make agile development easier by allowing for quick feedback and continuous delivery. The company was founded in 1996 by Michael Sayko. Its headquarters is located in Cleveland, Ohio, United States.
Softlayer Technologies
SoftLayer Technologies, Inc. was a cloud computing, managed hosting, and dedicated server company. Lance Crosby founded the company in 2005, and it is headquartered in Dallas, Texas, in the United States. In 2013, IBM purchased the company.
Trusteer
Trusteer is a computer security division that develops a suite of security products. Trusteer was founded in 2006 by Mickey Boodaei and Rakesh K. Loonkar. And was acquired by IBM in September 2013 for $1 billion. The company’s headquarters are in Boston, Massachusetts, in the United States.
Daeja Image Systems
Daeja Image Systems Ltd. is a prominent developer of software that enables viewing huge documents and photos easier for business and IT professionals. Daeja is a privately held software firm based in Milton Keynes, United Kingdom. On September 19, 2013, IBM purchased Daeja Image Systems.
The Now Factory
The Now Factory offers data network solutions that improve the client experience for Communication Service Providers. The company is based in Dublin, Dublin, Ireland, and was founded in 2006. IBM acquired The Now Factory in October 2013.
Xtify
Xtify is an IBM subsidiary that provides tools for mobile app publishers to run push and location-based notification campaigns. In 2007, Xtify was established. IBM’s Xtify mobile messaging capabilities, as well as a new SMS digital messaging offering, are included in the Enterprise Marketing Management portfolio.
Fiberlink Communications
Fiberlink Communications Corporation offers mobility as a service, assisting businesses in connecting, controlling, and securing laptops and mobile devices. Its headquarters are in Pennsylvania, United States, and it was created in 1991.
Aspera Inc
IBM Aspera is a software application that enables customers to move crucial files and data sets of any size at high speeds via existing infrastructure and global IP networks. Aspera was created in 2004 and is headquartered in California, United States. In January 2014, IBM purchased Aspera.
2014
Silverpop Systems, Inc
Silverpop Systems, Inc. Is best in digital marketing. The business provides automated email marketing ideas, campaign management, execution, and campaign performance analytics. It’s based in Atlanta, Georgia, United States, and was established in 1999.
Cloudant Inc
Cloudant is a scalable, disseminated cloud database for web, mobile, IoT, and serverless applications built on Apache CouchDB. The company was founded in 2008 and was acquired by IBM in 2014.
Cognea
Cognea creates interactive virtual agents by designing and developing artificial intelligence technology platforms. The company was founded by John Zakos and Liesl Capper in 2013 and it’s based in the Greater New York Area, East Coast, Northeastern US.
CrossIdeas
Identity & Access Governance Solutions from CrossIdeas help you manage people, applications, and entitlements in a unified way. IBM’s leadership in delivering innovation, services, and software for protecting companies will be strengthened with the acquisition of CrossIdeas.
Lighthouse Security Group
Experts in the domains of identity management and access management (IAM), cloud computing, and software make up the Lighthouse Security Group. The year the company was founded was 2007.
2015
Blekko
Blekko was a web search engine whose declared objective was to produce better search results than Google Search. On November 1, 2010, the institution was established.
AlchemyAPI
AlchemyAPI was a machine learning related software business. Deep learning was used in its technology for a variety of purposes. It was created in 2005 and is situated in Denver, Colorado, United States.
Explorys
Using the Explorys Platform, healthcare organisations may collect, link, and combine data from hundreds of different sources across their corporate and clinically integrated networks.
Phytel
Phytel is a leading provider of integrated population health management software, according to numerous observers. It is a population health company based in Dallas. In May 2015, IBM announced that it has completed the acquisition of Phytel.
Compose, Inc
Compose, Inc. runs a managed platform for database deployment, hosting, and scaling that is used by developers. Customers in the United States are served by Compose. In 2009, the company was established.
Bluebox
Blue Box combines the security of a private cloud with the ease of a public cloud, giving our clients a road to a hybrid cloud. This company was purchased by IBM in 2015.
Merge Healthcare Inc
Merge Healthcare Inc. provides patients and physicians with an efficient electronic healthcare experience. The firm was created in 1987 and is situated in Chicago, Illinois, United States. Merge Healthcare Solutions Inc and Cedara Software Ltd are the subsidiaries.
Meteorix LLC
Meteorix LLC specializes in the implementation of financial and human resource services. It’s a company based in Boston. Meteorix was founded in 2011 and employs around 200 people.
StrongLoop Ltd
StrongLoop is the key code contributor that develops StrongLoop Suite, a top Mobile API Tier. StrongLoop is established in San Mateo, California, and employs over 30 Node.js developers.
The weather Company- Digital assets
Weather.com and Weather Underground are owned and operated by The Weather Company, a weather forecasting and information technology company. The Weather Company’s digital assets were purchased by IBM for about $2 billion.
Gravitant, Inc
With roughly 200 workers, Gravitant cloudMatrix is an IT services and consulting firm. It is based in Austin, Texas. The complete IT value chain is addressed by Gravitant software and it was founded in 2004.
Clearleap
IBM Cloud Video is an IBM subsidiary that provides live video streaming services. The company was founded in 2007 by Gyula Feher, Brad Hunstable, and John Ham and its headquarters is located in San Francisco, California, United States.
Cleversafe
Cleversafe Inc. was a developer of object storage software and systems. Chris Gladwin created the company in 2004. Cleversafe was purchased by IBM in 2015 for $1.3 billion dollars.
2016
Iris Analytics
IRIS Analytics specializes in IBM Safer Payments to assist clients in reducing risk, increasing productivity, and increasing profits. IRIS Analytics was acquired by IBM on January 15, 2016, and the company’s headquarters are located in Germany
Ustream
Ustream is a firm that broadcasts live video. Its headquarters are in San Francisco, and it employs about 180 people. In March 2007, the company was founded, and in 2016 it merged with IBM. The company was rebranded IBM Cloud Video in 2018.
Resource Link
Resource Link is a customized Web-based service that gives you access to data for planning, installing, and managing IBM Systems servers and applications.
Aperto
In the DACH region, Aperto is a renowned digital agency. In 2016, the company merged with IBM. The company was founded in 1995 and has its headquarters in Berlin. They work with both domestic and international clients.
Ecx.io
ecx.io works with its clients to identify digital opportunities and help them grow their businesses. The company was formed around 25 years ago. The company merged with IBM in 2016
Truven Health Analytics
Truven was acquired by IBM Corporation on February 18, 2016, and incorporated with IBM’s Watson Health subsidiary. Truven Health Analytics provides a solution that ensures pharmaceutical safety, health, and disease management.
Optevia
Optevia specializes in the public sector Microsoft Dynamics CRM. It’s a UK-based systems integrator that IBM purchased in 2016 in order to address rising software demand.
Resilient Systems
Security teams can use the Resilient Systems, Inc. platform to design and maintain key enterprise software. They create computer software and safeguard businesses from cyber-attacks. In 2010, the company was established.
Blue Wolf Group LLC
Bluewolf is a consulting firm that specializes in developing digital solutions that produce outcomes. Bluewolf, a cloud consulting firm, was acquired by IBM for approximately $200 million. Bluewolf was bought by IBM on May 12, 2016.
EZSource
EZSource is a comprehensive product suite that offers reliable, automated analysis and measurements. Developers can see which programs have changed thanks to EZSource’s visual dashboard. The company was established in 2033.
Sanovi Technologies
Sanovi Technologies Inc is a software development company that creates and builds applications. Cloud migration, disaster recovery, private cloud infrastructure, and enterprise application solutions are all available through the company. The company was started in 2002 and is headquartered in Bengaluru.
Promontory Financial Group
Promontory Financial Group is a firm that provides financial services advice to clients. It is being completed under IBM’s supervision. The company was created in 2001 and is based in Washington, D.C., in the United States.
2017
Agile 3 Solutions
Agile 3 Solutions creates products that help clients renovate their businesses. The company’s headquarters are in San Francisco, California, USA. Raghu Varadan, the company’s founder, started it in January 2009.
Verizon – Cloud services
Verizon Business is a Verizon Communications division that delivers services and products. Verizon Business was founded in January 2006. Verizon split up into three groups in 2019, renaming Verizon Business Solutions as Verizon Business Solutions
XCC
IBM joined with XCC so that it will strengthen the IBM Connections portfolio by providing tools to organizations, and reduce content fragmentation, enabling individuals to work and communicate more effectively across their organization.
Cloudigo
Cloudigo is a company that provides network infrastructure. Cloudigo is a new brand that came out in 2016. Cloudigo is owned by International Business Machines Corporation, a New York-based firm. Information Technology Services is Cloudigo’s industry.
Vivant Digital
In the United States and Canada, Vivint Smart Home, Inc. is a publicly-traded smart home firm. Keith Nellesen and Todd Pedersen launched APX Alarm Security Solutions Inc in 1999. The company’s revenue in 2020 was 1,260.7 million dollars. There are approximately 11,000 people employed there.
2018
Armanta, Inc
Armata Pharmaceuticals is a biotechnology firm that develops drugs to treat drug-resistant bacterial diseases. The company’s headquarters are in Marina del Rey, California.
Oniqua Holdings Pty Ltd
Oniqua was established in 1990 and is headquartered in Denver, Colorado. There are between 50 to 200 individuals employed there. MRO Analytics, Supply Chain Management, Asset Performance Management, Maintenance, Repairs, and Operations are among the services offered by the organization.
2019
Red Hat
Red Hat, Inc. is a software corporation that specializes in providing open-source software to businesses. Raleigh, North Carolina is home to the company headquarters. Bob Young and Marc Ewing launched the company in 1993.
2020
Spanugo
For the enterprise hybrid cloud, Spanugo offers Cybersecurity Posture Assurance. The company began operations in April 2016 and ceased operations in June 2020. Doc Vaidhyanathan, Doss Karan, and Janga R Aliminati are the company’s founders.
WDG
WDG works with your firm to help you get the most out of your money. IBM’s Robotic Process Automation application is cloud-based, clever and intuitive, and simple to use, allowing you to get the most out of your investment
TruQua Enterprises
TruQua Enterprises is a service provider and it’s specialized in SAP Finance, deployment strategies, development libraries, best practices, implementations, development libraries, blueprint designs and solution research. The Headquarters is located in Chicago, Illinois, United States. The company was founded in 2010.
Instana
Instana, a German-American company, is best in creating APM software. This application performance management software is used for handling the software used in microservice architectures and 3D visualization. This company is based in Chicago, Solingen, and San Francisco.
Expertus
The company’s headquarters is in Canada. The company assists in Case Management, Data Management, Fraud Detection, Messaging Services, Payment, Processing, Payments Solutions, Regulation Compliance, Security Service, Software Updates, and Technical Maintenance. On 15 December 2020 IBM announced its acquisition with Nordcloud.
Nordcloud
Nordcloud is a cloud consulting services provider company. Its headquarters are in Helsinki, Finland, and was established in 2011. Over 450 employees are working under this company and its turnover is about $61 million. On 21, December 2020 IBM finally acquired Nordcloud.
2021
7Summits
7Summits is a Salesforce Platinum Consulting Partner in transmitting transformative digital tests. It formed an acquisition with NYSE: IBM on January 11th, 2021 and it focuses especially on Salesforce ecosystem-focused assistance.
TAOS
It is an IT service management company. The services they provide are migration, strategic information technology planning, cloud architecture, security assessments, network and systems engineering, and technical program management. On the 14th of January, 2021, IBM announced that it will acquire Taos.
MyInvenio
MyInvenio is a facet of the IMB company. It allows the unions to use AI-powered automation and helps to simplify business processes by providing a finding in the mining process. On April 15, 2021, IBM announced a conclusive pact to acquire myInvenio.
Turbonomic
It is one of the fastest-growing technology companies. They provide applications that manage IT. Their software fulfils the demand regarding the network, storage, and performance and also protects the automation in context. On June 17, 2021, IBM announced the finale of its acquisition of Turbonomic.
Boxboat
BoxBoat is Cloud Migration engagements, DevOps, and Continuous Delivery. They use modern technologies for enabling organizations in revising the digital data in the cloud. On the 29th of July, 2021, IBM announced its acquisition with Boxboat Technologies.
Bluetab
It is a technical services and business software company. Their departments can be founded in the UK, Mexico, and Spain. The Java EE, Microsoft. NE and other open-source devices are the technologies the company operates with. In 2021, Bluetab Solutions Group joined with IBM.
Conclusion
IBM progressed plenty of coalitions and acquisitions in the last decade. IBM has its tract in 20 countries and 25 different US states. Its substantial exchange was in 2014, peddled IBM’s x86 Server Business for $2.1B to Lenovo Group and the substantial acquisition transpired in 2018, Red Hat for $34.0B. Software and technology are IBM’s most accomplished sectors.
As of 2020, IBM’s annual net income is $5.6 billion and its revenue is $73.6 billion. And as of July 13, 2021, its market capitalization is $125.3 billion. As per the above-mentioned IBM Acquisitions list, IBM made a total of 199 Acquisitions.
FAQ
How many acquisitions has IBM made?
IBM has made nearly 200 acquisitions from 1912 to 2021.
Who is IBM owned by?
The major shareholders of IBM are James Whitehurst, Arvind Krishna, James Kavanaugh, Vanguard Group Inc., BlackRock Inc., and State Street Corp.
Infosys Limited is one of the most well-known Multinational Tech Companies in India, headquartered in Bengaluru, Karnataka. The company is known for services like Business Consultation, IT and Outsourcing.
Infosys was established in 1981 and is now NYSE listed global consulting and IT company with more than 2,49,000 employees all around the world. The company is also considered to be the second-largest IT Company in India after Tata Consultancy Services. Infosys is also ranked 602nd largest company in the world according to the Forbes Global 2000 ranking.
Infosys first started out with a capital of $250 but now has grown into a company that generates over $14.22 billion in revenue in the year 2021, with a market capitalization of approximately $90.25 billion.
The company is over 40 years old and made a lot of development for the IT industry in India over the past years. It has played a role in the country’s emergence as a hub for software services. The company presently has over 123 development centres all over the world but is well known in countries like India, the US, China, Australia, Japan, Middle East and Europe.
Over 60%, 24% and 3% of its revenue was generated from North America, Europe and India in 2019, while the rest 13% comes from other parts of the world. Infosys is the first Indian company to be listed on NASDAQ. It has also created many salaried millionaires over the years.
The company works in domains like finance, insurance and manufacturing and provides services like NIA (Net generation AI platform), Infosys Consulting, Infosys Information platform, EdgeVerve Systems, Panaya Cloud Suite, Engineering services and digital marketing. Another well-known product is Finacle which is a universal banking solution.
Infosys wasestablished in the year 1981 by N R Narayan Murthy and six other engineers in Pune, Maharashtra with a small capital of $250.
Know everything about Infosys Business Empire
By 1987, the company had already opened its first international office in Boston, US. In 1992, the company went public so had to change its name from Infosys Technologies Private LimitedtoInfosys Technologies Limited.Later, the company was renamedInfosys Limited in 2011.
The company received the ISO 9001/TickIT certification and opened a development centre at Fremont in 1994. In the next year, Infosys also opened its first European office in the United Kingdom and will also set up its business practice.
The tech company established the Infosys Foundation and was assessed at CMM level 4 in 1997. It wasn’t until 1999 that Infosys got listed on the NASDAQ. Infosys becomes the 21st company in the world to achieve a CMM level 5 certification and opens offices in countries like Germany, Sweden, Belgium, and Australia.
Infosys has its offices in France and Hong Kong and development centres in Canada and UK in 2000 and has also expanded its offices in UAE, Argentina in 2001. The same year the company goes on to launch Finacle which is a universal banking solution.
In 2002, the company expanded its offices to countries like Netherlands, Singapore and Switzerland. The company finally reached the US $1 billion mark in revenue and then launched Infosys Consulting Inc in 2004.
Infosys crossed the $5 billion revenue mark in 2010 and even gets listed on the NYSE in 2012. According to Forbes, Infosys became the world’s most innovative company. It provided $250 million to help the “Innovate in India” and in order to support startups in India in 2015.
The company finally launched the awaited Infosys Maya. It is a platform that helps drive automation and innovation in companies. It has also launched Skava Commerce, a modular for e-commerce platforms in 2016.
In 2019, Forbes ranks Infosys as No. 3 in the best-regarded companies list and also launches the Infosys Live Enterprise Suite. In 2020, the company targets to attain carbon neutrality and even announces its ESG Vision 2030 where it would measure targets across the environment, social and governance.
Infosys Limited has been ranked number 1 in the 2021 HFS Top 10: Banking and Financial Servicesas per The Best of the Best Service Providers report.
EdgeVerve is one of the most popular Infosys subsidiaries that is known for its products and services. It is an innovative software product and offers an on-premise or cloud-hosted business platform. The company is a global leader when it comes to Automation and AI.
The company works in sectors like banking, digital marketing, interactive commerce, distributive trade, and credit servicing, and even enterprise buying and customer service. The company has a portfolio of AI which includes Infosys Nia, automation with AssistEdge and business applications like TradeEdge and ProcureEdge.
EdgeVerve also helps other companies in developing deeper connections with stakeholders and make innovations. Nowadays global companies from financial services, insurance, retail, life science, manufacturing and telecommunication use the company’s products.
One of its most known services is the Finacle, a universal banking solution that serves over 547 million customers nearly 16.5% of the world’s adult banked population. By providing these services the company is creating possibilities and helping other enterprises grow.
Panaya
Panaya – Infosys Subsidiary
Panaya is an international subsidiary of Infosys which is a software company based in the US. Some of its popular products and services are automated code remediation, collaboration test management and test execution and ALM acceleration.
The company is a leader in providing Automation technology, especially to large-scale enterprises. Panaya is a popular software as a service (SaaS) company and has its presence in the US, EMEA and Asia and also has its subsidiaries in Israel, Germany, Japan and Australia.
Infosys BPM Limited
Infosys BPM – Infosys Subsidiaries
Infosys BPM became a subsidiary in 2002 and is known for business process management. The company mainly operates in countries like India, Poland, Netherlands, South Africa, Brazil, Mexico, the US, Puerto Rico, China, Philippines, Australia and others.
The company focuses on providing end-to-end outsourcing and other benefits at lower costs, productivity improvements and process reengineering. The company also has other subsidiaries under it that are Infosys Portland and Infosys McCamish Systems.
The company is headquartered in Bengaluru, Karnataka and is mainly popular for integrated outsourcing and transformative services. More than 60% of the company’s business comes from the overlapping clients of their parent Infosys.
Infosys BPM has so far opened 33 delivery centres in 14 different countries and 44,443+ employees from more than 110 nationalities. The company has also won over 60 awards and recognition in the past 5 years.
Infosys Consulting Holding AG
Infosys Consulting – Infosys Subsidiaries
This company was initially called Infosys Lodestone. It is a global company known for providing consulting, technology, outsourcing and next-generation services. The company is now a global advisor to leading companies on things like process engineering and also managing tech-enabled transforming programs.
The company offers various customized solutions to the businesses that their clients face and also helps them renew their existing IT landscapes along with bringing in new technology and innovation to their business.
One of their most well-known services is the Infosys Aikido which includes working with clients in order to leverage the knowledge of systems. The company has so far conducted over 150 design thinking workshops and is actively engaged in 50 plus global companies and using Aikido to transform programs.
Infosys consulting holding tries to combine human-centric approaches with advanced technology and help companies to reimagine their future and create lasting business value.
Infosys Public Services Inc.
Infosys Public Services – Infosys Subsidiary
The company is a US-based subsidiary of Infosys known for providing services like business consultation, technology solutions and even advanced digital service.
Infosys Public Services, Inc. helps public sector organizations mostly in the countries like the US and Canada to stay ahead by innovating new things.
Their services allow their customers to renew their companies and come up with new avenues to generate value. The company has over 40 plus years of cross-industry experience and is also adapted for the public sector. The company also provides flexible delivery models for predictable and on-time execution.
Infosys Consulting Limited
Infosys Consulting – Infosys Subsidiary
This is another well-known international Infosys subsidiary that was established in Brazil in 2009. The company is said to have many offices in cities like Sao Paulo, Rio De Janeiro and Nova Lima.
Infosys Consulting helps its clients by providing business solutions, leverage technology, and global infrastructure. Their main vision is to show courtesy to their clients, employees including vendors, and society at large.
The company has so far been respectful and successful in Brazil and is also considered to be one of the fastest-growing subsidiaries of Infosys. With the help of this company, Infosys has managed to expand in the Latin American market which is important as the region has huge potential in the IT and enterprise applications market with a booming economy.
Kallidus
Kallidus – Infosys Subsidiary
Kallidus Inc, a US subsidiary of Infosys, is headquartered in San Francisco, California. The company is known for developing and providing mobile commerce and also helping its clients with digital marketing.
Kallidus is good at developing applications, websites and various other digital shopping experiences for devices like mobile, tablet, desktop, etc. It also helps its clients at all stages of the value chain including design, implementation and managed services for retailers.
Kallidus owns SkavaONE, which is a cloud-based tech platform well known for creating mobile commerce websites, mobile apps, online marketing campaigns and social media experiences for their clients.
This also includes services like Mobile commerce suite, in-store suite, digital commerce suite, and Skava studio. The company offers maximum flexibility in e-commerce integration with API, raw data adaptors in order to create an Omnichannel experience.
Noah Consulting LLC
Noah Consulting – Infosys Subsidiary
Noah Consulting, LLC is a global leader when it comes to management consulting services. The company helps oil and gas companies in managing, creating and deploying the information solutions for the business to generate value from their oil and gas assets. It focuses on providing the best data management, data warehousing, data integration, business intelligence, information quality and even data management solution.
The company has over 15 years of experience in delivering practical solutions to the most complex information challenges the industry faces. Noah Consulting has its headquarters in Houston, Texas with over 50-100 employees. The company has a deep knowledge of the industry, information strategy planning, data governance which is why it is one of the most important subsidiaries to Infosys.
Infosys is now a successful conglomerate known in more than 50 countries and popular among countries like India, the US, China, Australia, Japan, Middle East and Europe. The company has played a main role in the development of the IT Industry of the country and was pioneered by a lot of innovations.
The company is now a global leader when it comes to consulting, technology, outsourcing and next-generation services. They help their clients to always stay ahead in the industry by helping them attain the business trends by providing various solutions.
FAQs
What are the main services of Infosys?
The company is known for services like Business Consultation, IT and Outsourcing Services.
Where is the headquarters of Infosys?
The headquarters of Infosys is in Bengaluru, Karnataka.
Wipro Limited is an Indian multinational corporation that is headquartered in Bengaluru, Karnataka. It is known for Wipro products and services list which includes IT services, BPO services, IT consulting, testing, research and development in the software and hardware areas of companies around the world.
Wipro Group is a global leader when it comes to cognitive computing, robotics, hyper-automation, cloud, analytics and emerging technologies. The Wipro group of companies list is recognized globally for its portfolio of services, sustainability and corporate citizenship. The chairman of the company is Azim Premji who is the second wealthiest person in India and the person credited for the success of Wipro.
The Wipro subsidiary companies are well one of the top IT service providing companies different types of Wipro products such as enterprise application services like ERP, SCM, CRM to services like E-procurement, E-Business solutions. The Wipro subsidiaries are divided into four different parts which are Wipro Limited, Wipro Consumer Care and Lighting, Wipro Infrastructure Engineering And Wipro GE Medical Systems Limited.
The Wipro group companies offer services and products of Wipro to various industries like Finance, Telecom, Media, Utilities, Energy and Entertainment. Not only that, but Wipro company is also one of the largest R&D services in the world. The company has over 180,000 employees from various countries across six continents. Wipro also offers Consulting services and helps companies in Business Process Outsourcing which help in HR, Procurement, Finance and Accounting.
The Wipro sub-companies also provide technology infrastructure services in terms of revenue, people and to over 200 customers in the US, Japan and Europe and 650 customers in India. The total revenue of Wipro as of 2021 is over $10 billion while its net income for 2021 is $1.4 billion. Wipro Industries is known to be the largest public-traded company in India and the seventh-largest IT Services Company in the world.
Wipro originally known as the Western India Palm Refined Oil Limited (abbreviated to Wipro) started in December 1945 by its founder Mohamed Premji. The initial products of Wipro were different types of oil, as it started out as a manufacturer of vegetable and other refined oil known as Kisan, sunflower and camel in Maharashtra.
In 1966, Azim Premji took over as the company’s chairman after his father’s death. The name of the company was changed from Western Indian products limited to Wipro products in 1977. That name was further replaced by Wipro limited in 1982, this was because in the same ear the company also entered the IT industry.
Azim Premji is responsible for transforming Wipro into a Wipro Fluid company and also introducing Wipro Fluid Power that manufactures hydraulic and pneumatic cylinders. In 1979 Wipro became India’s first computer manufacturer as the company developed and sold its computers in 1981. With its success, the company forayed into the field of software development and is credited for introducing software packages for hardware customers.
Facts on Wipro
In the 1990s, the company got started its range of baby toiletries like Wipro baby soft and also the Santoor talcum powder which became a staple in Indian homes which was among the first Wipro subsidiaries. Wipro Infotech and Wipro system got merged with Wipro in 1995 and they became Wipro subsidiary companies. The company expanded internationally in the 1990s and even got listed on New York Stock Exchange in 2000. It was in 2002 that Wipro became the first Indian software tech and services company to get the ISO 14001 certified.
The Wipro subsidiaries list kept growing as it ventured into manufacturing fluorescent lamps making the Wipro Consumer Care and Light Group enter the market. Wipro joined the billion-dollar club in 2004 and also partnered with Intel on a project called i-Shiksha. It wasn’t until 2012 that the company decided todemerge its consumer care, lighting, furniture, infrastructure engineering into a separate company known as the Wipro Enterprise Limited. The company further made many clever and strategic acquisitions and signed contracts with many international firms.
Wipro has so far made over 19 acquisitions and 8 investments. All the Wipro acquisitions so far are estimated to beover $2.49 billion. The company has invested in many industries like SaaS, Search AF test, standard, manufacturing tech. Some of the top companies in the Wipro acquisitions list are Infocrossing acquired for $600 million in August 2007. One of the other top Wipro acquisitions was Appirio acquired for $500 million in October 2016 and HealthPlan Services acquired for $460 million in February 2016.
Some of the other recent Wipro acquired companies are Rational Interactions a settle based digital customer experiences consultancy which the company acquired in February 2020. Wipro recent acquisition was in October 2020, when Wipro acquired Encore Theme Technologies, that same month it also acquired Eximius Design for $80 million. The last Wipro acquisition was in March 2021 was Capco a British consultancy firm.
Topcoder became one of the Wipro subsidiaries when the company was acquired by Wipro in 2016 along with Appirio which were a part of their $500 million deal. Topcoder is a crowdsourcing company that has a huge global community of data scientists, developers, programmers and designers. How Topcoder works is that it pays the members of its community for offering its services to corporate, mid-size or even small business clients.
The company is also known for its yearly Topcoder Open tournament and other small regional events. This subsidiary of Wiprowas founded by Jack Hughes in the year of 2001, the company first started with Competitive programming challenges which helped generate interest among the student community. The company became one of the Wipro sister companies when it started offering various software development services and similar products of Wipro to 3rd party clients.
In order to generate more income, the company started new competition tracks that gave more work to its employees. After being acquired by Wipro the company has continued to offer its clients many hybrid crowd platforms and help create certified and private crowdsourcing communities. Wipro then integrated its employee’s only crowdsourcing platform TopGear with Topcoder.
The various services offered by the Topcoder design community are Information Architecture which helps the clients with wireframing and generating ideas. It also helps with the UI/U/CX design which involves the creation of apps and web designs and coming up with design concepts, ideas and presentation design all of which are said to be top Wipro company products. The software development challenges that topcoder offers are bug bash, code, first to finish, etc.
Appirio
Wipro Subsidiary- Appirio logo
Appirio is one of the best Wipro acquisitions, as it was acquired in 2016 as a part of their $500 million deal along with Topcoder. The company was founded by Chris Barbin, Narinder Singh, Glenn Weinstein and Mike O Brien. Appirio is currently one of the topWipro sub-companies as offers information technology consulting services and has its headquarters based in Indianapolis in the USA. It company is known for its tech and professional services that its offers only to the clients that want to adopt public cloud applications.
They also offer SaaS services like Salesforce and Google apps which are the top products of Wipro. The main competitors of Appirio’s are Accenture and Deloitte. The company was founded by Salesforce and angel investors ($1.1 million), Sequoia Capital ($5.6 million), Sequoia Capital and GGV capital ($10 million) and General Atlantic ($60 million).
The company is a leader among Wipro group of companies and was awarded many titles such as On-Demand Company Of The Year by AlwaysOn, Best Place To Work In Bay Area by San Francisco Business Times in 2010. This is one of the few Wipro listed companies that have many other satellite offices in cities like Tokyo, London, Dublin, Sydney, Espoo, Stockholm, Porto, Pune, Bangalore, Noida, Hyderabad and Jaipur. The company is known to utilize public cloud solutions as it is a serverless company.
Opus Capital Markets Consultants
Wipro Subsidiary- Opus Capital logo
Opus is one of the top companies in the financial services industry which is why it became one of the top Wipro subsidiary companies. The headquarters are based in Lincolnshire in Illinois, the US and have over 500 employees. The company was founded in 2005 that became a wholly-owned subsidiary of Wipro in 2013. Opus offers various services like Residential mortgage, commercial mortgage, Compliances services, servicing reviews and advisory services which extends the Wipro company products list.
The company is among the few Wipro subsidiaries that specialize in risk management providers for mortgage and consumer lenders, services and investors. The company is focused on delivering a wide range of services like due diligence, quality control, servicing oversight and operational assessment.
Yardley of London is a British personal care brand that was acquired by Wipro in 2009 and is one of the unique Wipro subsidiaries. The company is known to be one of the oldest and specializes in cosmetics, fragrances and toiletry products. Yardley is also one of the biggest manufacturers of soap and perfumes, which increases the Wipro FMCG products. Yardley is known to have received two Royal Warrants.
The company was originally established by the cleaver family in 1770. The name of the company was changed to Yardley and Statham in 1823 after William Statham brought the firm. Yardley has made many soaps that are to this date popular. Because of the growing popularity of Yardley soaps and cosmetics in the 20th century, the company opened a shop in London in 1910.
In 1991, the company also introduced men’s grooming products. In 2005, the Jatanias which is Britain richest Indian family brought Yardley for 60 million euros 2005. It wasn’t until 2009 that Wipro consumer care brought Yardley for $45 million the brand ambassador for Yardley in India is Bollywood actress Katrina Kaif. Yardley is among the most popular Wipro company products.
Wipro GE Medical Systems
Wipro Subsidiary- GE Healthcare logo
Wipro GE Medical Systems is a joint venture between GE Healthcare South Asia and Wipro in 1990 and is currently one of the top Wipro companies in India. The company is known for its research and development of healthcare products. The company increases the Wipro products list in India, as it manufactures a vast variety of gadgets and equipment for diagnostics, healthcare ITand services to help healthcare professionals that are used for combat cancer, heart disease and other ailments.
Wipro GE Medical Systems is among the only company in Wipro companies list that strictly follows six sigma quality standards in all products. The company is an expert in medical imaging and information technologies, medical diagnosis, patent monitoring systems, drug discovery, and biopharmaceutical manufacturing tech, performance improvement and solution services, which are among the well known Wipro company products list. They offer all these services at a lower cost.
The company is among the most respected Wipro group companies as it is present in Asia Pacific, China, Africa, Europe, India, Latin America, America and Canada. The specializes in making products for Vascular, Orthopedics, Spine, Urology, Cardiac, General Surgery, Pain Management, Outpatient Interventional.
Wipro Consumer Care and Lighting
Products of Wipro Consumer Care and Lighting
Wipro Consumer Care and lightning are one of the biggest and fastest FMCG companies in countries like India, Asia and Africa. It is one of the most successful companies owned by Wipro as its annual sales revenue is now up to Rs. 77.4 Crore in the year 2019 to 2020. The company is currently present in 20 different countries like India, Asia, Africa and the Middle East. Wipro consumer care and lightning have over 16 manufacturing units in India, Malaysia, Indonesia, the Philippines, Vietnam, China and South Africa.
The company also has Research and Innovation Centers in India, Malaysia, China, the Philippines and South Africa. They are based in 22 countries, marketed in 60 plus countries with over 10,000 plus employees. The Wipro company products list such as like personal wash products, skincare products, male grooming products, toiletries, household products, furniture, commercial lighting, etc is well known in the country.
Wipro Consumer Care and lightning are among the top Wipro group of companies as has made several acquisitions like Unza, Yardley, LD Waxsons in order to get a global footprint. The key brands of Wipro consumer care and lighting are Santoor, Chandrika, Maxkleen, Giffy, Enchanteur, Safi, Aiken, Romano, Carrie, Garnet, Splash which come from different parts of the world.
This company is one of the Wipro companies in India and is known for developing, marketing and manufacturing hydraulic cylinders that are used for cargo handling, mining, freight and waste processing. The company also makes various products such as filters, pumps, valves, rear hinges and different components of hydraulic cylinders.
It is known to deliver over a million cylinders to original equipment manufacturers (OEMs)across the world. The company specializes in top Wipro products and services such as hydraulic cylinders for Construct and Earthmoving, Material and Cargo handling, Forestry, Farm and agriculture and mining. The company’s business has stepped up and launched specific solutions to fight Covid 19.
Conclusion
Wipro is an Indian conglomerate that has a global footprint for its services and products like IT services, BPO services, IT consulting, testing, research and development services. One of the main reasons for the company’s success is the strategic and clever subsidiaries it has acquired. Wipro group companies were and will continue to be a leader in the consumer market space and will increase the Wipro clients list. Because of the Wipro subsidiaries and Wipro acquisitions, the company has an extensive Wipro products list in India.
“Survival of the fittest” is a phrase the biologist Charles Darwin popularised. This denotes in biology the fact that, for an organism to live and survive in extreme nature, it has to be the fittest. So, the laymen implication is that the fittest are mostly entitled to survive. This is a widely used term in biology, whenever someone studies a species. In fact, every species that you see today is the fittest left out of past versions of species. The process of evolution leaves the fittest and curbs the rest of all.
While “survival of the fittest” is the truth for the biological world, it seems that the same phrase cannot be used for the trade world. Businesses all over the world need not follow the trend. However a little tweak in that phrase will perfectly fit how the business world behaves. We can say that the business world follows the thumb rule of “Survival of the biggest”. Big corporations with deep pockets run the show. Everywhere you see, its valuations, employees magnitude, and scaling demographics are the prime factors that businesses run after.
This is not as simple as it sounds. The reason being that every corporation in the world was at a time, nothing but small and fringe. The rough path that these small businesses go through makes them tough and with the flow of time they become fatter and bigger. The traditional path is to go bootstrapped, that is to use its own revenue for growth. Some follow raising capital techniques to go and scale.
One of the most famous (now) and new trends that the businesses follow to go big is something other than these. It is through the way of acquisitions. So what does it mean ? How does it work ? and why do businesses resort to acquiring other businesses ? These are some questions which we will try to figure out in this article. Read on to discover otherwise unnoticed details.
Acquisition means buying other corporations. Businesses all over the world follow this method to grow and scale either business. Not to mention that this is probably the fastest way to scale. So, acquisition occurs when one company obtains a majority stake in the other (target) firm, which retains its name and its legal structure.
This can be done to foster your own growth or it can be also done to revive a dying business. For example, in the year 2002, PayPal was having a rough time and eBay stepped in as a hero to save its life. There are case studies or examples in later of this article but first let us know some basics.
There are many ways a company can acquire some other company. We will discuss them in detail now. However there can be many types but there are always some prime types of acquisitions. Before jumping into the types of acquisitions, we need to learn why companies do that in the first place.
There are many benefits to acquiring. That is why big businesses are always looking for good businesses to acquire. They kind of prey on them. The benefits can turn into disadvantages too if the acquired business is not good. So, the acquirer has to be choosy in this matter. Here we are discussing some of the best known benefits of acquiring other businesses. Read on to find out the reason for which businesses acquire,
Synergy
The word synergy means to combine two organisations or substances in order to make the resultant substance more effective than the individual power of every combined corporation. This is one of the biggest reasons why big companies like to acquire other small corporations.
The resulting organisation after the acquiring process turns out to be more effective and efficient than the previous two individual organisations. This helps in achieving more power and thus to get more market share in whatever product the companies are dealing in. This also ensures that both the companies get bigger market share than they were getting before the acquisition. This is a win-win situation for both the parties, which becomes now a single unit.
Reducing Competition
When a company acquires some other company, the resultant company faces less competition. Simply stated, earlier both the companies were competing for the same market share and with similar products.
With the inception of acquiring, both the companies join hands to eliminate the competition and run towards the same goal of owning more market share. This however requires both the acquirer and the acquiree to be bound by a contract.
The acquiree may agree to the acquiring terms only after some handsome paycheck. This makes it a little more complex than it looks on the outside. Moreover, for this transaction to happen we need to calculate the exact value of the acquired company which is a time consuming process. Anyhow, once it happens, eliminates the competition.
Growth and Performance
Another reason for acquiring a business is growth. This point can be said as a subpoint of the first mentioned reason. A company can grow and scale significantly without doing much hard work by itself.
Acquiring can do the work for the organisation. It gets the opportunity of growth while achieving the goal of efficiency. You get to use the goodwill of the acquired company and the reach of that company to make your own organisation touch the sky. However, choosing which corporation to acquire is a challenge in itself. If done correctly, it can be a recipe for success and if done wrongly, can make you the architect of your own downfall.
The Advantage on Cost Savings
When a business acquires another business, it happens mostly in between businesses of the same product. When two same organisations of supply chain assimilates then this results in cost savings for the resulting company. Thus, by buying out a distributor or supplier of a product, businesses can lower their cost up to a large extent. This helps in achieving efficiency in manufacturing products and thus getting a much larger share of the product market.
There can be many forms and types of acquisitions. They can differ from one to another with a change in organisation to organisation. There are however, four basic and most widely accepted types. Those four types we are going to list here.
Horizontal Acquisition
If you’re a math fan, Horizontal means a flat two dimensional line on a plane. In a market, each organisation has to deliver some sort of value in order to survive. Not only this, they have to strive to be better than everybody else in that segment of product. This competition can be easily eliminated by acquiring the other standing organisation. So horizontal acquisitions are those acquisitions in which a firm acquires another similar firm (in a horizontal direction) to eliminate competition.
Vertical Acquisition
As horizontal is a flat line, Vertical is a perpendicular, that is a standing line from ground. In horizontal acquiring we saw firms acquire firms which are in almost the same shoulder as the acquirer. In vertical, we don’t look at some flat line, we just acquire forward or backward of the supply chain. For example, a wholesaler who is a big wholesaler in a market can acquire the manufacturer of the product in order to supply the product at cheap rates. This is known as backward vertical acquisition. In the same manner, if that wholesaler acquires a retailer, then it will be called a forward vertical acquisition. In this case he/she will be able to be more consumer facing and consumer centric.
Congeneric Acquisition
This acquisition is a little bit different than types mentioned before. So, in this modern world when time is really a luxury, we tend to go to shopping malls to get everything at one place. This helps us to save time travelling. This concept inspired the mode of Congeneric acquisition, which says to acquire businesses to provide a one-stop destination for your clients. For example, a bank whose big customers require more frequent travel around the world may need travel insurance.
After identifying this opportunity, that bank can buy or acquire an insurance company in order to help get its customers a travel insurance plan. This makes them more profitable and provides the customers with a one stop market. This reduces hassle for both the parties.
Conglomerate Acquisition
This type takes the acquisition models to a whole new level. It is an acquisition between companies that are totally different. They have different products or services, different demographics, different business and revenue models. Even with all these disparities, they go on and initiate the acquiring process.
The reason for such an acquisition happening is that the company is trying to go on unexplored territories. They want to expand to new places and to a different product market. This type of diversification strategy helps both the firms in diversification of their businesses, Synergy benefits, increasing customers magnitude, and to achieve better economies in scale.
One famous example of this type of acquisition can be the merger between PayPal and eBay, both the companies are totally different and PayPal in 2002 was struggling to play in the payments markets.
eBay acquired it by paying a sum like a billion dollars and kept PayPal going. Since then PayPal is able to revolutionise payments in the whole of the world. This is what a good acquisition can do to companies and it is still considered a benchmark in silicon valley.
Few Famous Examples for Understanding Acquistion
We all are fans of big and flashy organisations but most often we don’t get to see the BTS (Behind the scenes). Almost every big organisation has acquired some other businesses to foster growth. They were small too at some point in time, but now stand at a paramount position. Here are some examples of a few famous behemoths.
Apple bought Siri (the automatic personal assistant) in 2010 to enhance its then newly launched iPhones. It became an instant hit and iPhone users loved it. So, In 2014, Apple purchased Novauris Technologies, which was a company specialised in speech-recognition-technology, in order to further enhance Siri’s capabilities. In 2014, Apple also purchased Beats Electronics, which had recently launched a music-streaming service. Both the companies now enjoy the biggest market share in their product segments.
Speaking at India level, we are not too far off the list. We have seen many acquisitions in our business world as well. Startups do it, established companies have done it.
Say for example Zomato in the year 2020 acquired Uber eats. In January 2020, Zomato had acquired Uber Eats’ India operations in a non-cash deal for ₹1,376 crore, excluding an amount of Rs 248 crore payable towards GST. As part of the deal, Zomato issued 76,376 compulsorily convertible cumulative preference shares (CCPS), each valued at ₹180,153, to Uber India. This acquisition was done to make Zomato scale and touch new heights, which it did. Zomato went on to even get listed in Indian stock exchange on July 27, 2021. Its story has been repeatedly referred to as a great success story in our startup ecosystem.
Another big acquisition which the Indian startup ecosystem recently saw was BYJU’s acquiring Akash Institute for a whopping billion dollars. Byju’s is an educational and technology faced startup, referred to as an Ed-tech company. On the other hand Akash institutions are one of India’s biggest coaching institutes for competitive exams. This acquisition made Byju’s spread its wings as the company prepares to take a flight that will cover the whole of India. IPO-Bound BYJU’s Spent More Than $2.4 Bn On Acquisitions In 2021
So we read what acquisition is and why companies acquire other companies. They can be a great way to scale in a country like India. Not to mention that the second most populous country is still in its development phase. Despite being hard to perform, acquiring businesses has become famous among not just big companies but new age startups too. New age startups like Zomato or BYJUs are open to buy corporations to scale new heights.
There is however, indeed no magic formula for a successful acquisition. All we can do and hope and research for, is just better probabilities. Each deal has its own research and its own personal strategies at the back. But an acquisition is mostly seen as a neat method to scale, if done correctly. India has seen multiple acquisitions and it has seen economics of startups at scale too.
This is a new world where leverage is at its probable peak. Anyone from anywhere can use it, but the thing that differs is how the person uses it. Use it well and you will fly, use it badly and you may become the architect of your own downfall. Some people may want to quote that “there are no losses, only learnings” and I agree with that.
FAQ
Why do companies buy out other companies?
The major reasons companies acquire other companies to seek economies of scale, diversification, greater market share, increased synergy, cost reductions, or new niche offerings.
Why companies merge or acquire?
The most common factor companies acquire other companies are to grow its market share and reduce the costs of developing business activities.
How do company acquisitions work?
An acquisition is when a company acquires the target company’s shares to make decisions about the newly acquired assets.
