Hitachi Systems to Enter Indian IT Market Through Acquisition of Leading Indian IT Services Company
Acquisition to Obtain Business Platform in India and Build Value Chain, Leveraging Synergies between Both Companies
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Tokyo, Japan and New Delhi, India - February 26, 2014
Hitachi Systems, Ltd.
("Hitachi Systems"), a wholly owned subsidiary of Hitachi, Ltd. (TSE:
6501) and Micro Clinic India Pvt. Ltd. ("Micro Clinic"), an IT services
company based in the Republic of India ("India"), today announced that
they have concluded a share purchase agreement and shareholders'
agreement to bolster the IT services business in India.
Specifically, Hitachi Systems will acquire approximately 76% of Micro Clinic shares and rename the company as Hitachi Systems Micro Clinic Pvt. Ltd.
Looking ahead, Hitachi Systems and Micro Clinic will implement
procedures aimed at completing the share transfer by the end of March
2014.
In India, demand for IT services is growing rapidly. This reflects both the accelerating pace by which Japanese
and
other overseas companies are entering the Indian market, and also the
expansion of Indian companies' IT investment accompanying the business
growth.
Hitachi
sees India as an important region in its global strategy and is
stepping up development of the Hitachi Group's Social Innovation
Business in the country. Hitachi aims to grow revenues in India by
nearly 3 times to 300 billion yen by the fiscal year ending March 31, 2016,
compared with the fiscal year ended March 31, 2012. In this context,
Hitachi Systems, a core company of Hitachi's Information &
Telecommunication Systems Business, has been exploring ways to obtain an
IT services business platform and expand business in India, where rapid
economic growth is under way.
Meanwhile,
Micro Clinic is one of India's leading IT services companies. With 15
business sites in major cities across India, and approximately 150
satellite offices, Micro Clinic provides a broad range of IT services
centered on the supply of IT platforms and maintenance services.
Furthermore, Micro Clinic is working to strengthen virtualization
services, managed services and other services, with the aim of driving
further business expansion.
Against
this backdrop, Hitachi Systems and Micro Clinic have agreed that
Hitachi Systems shall convert Micro Clinic into a Group company.
Mr. Naoya Takahashi, President and CEO of Hitachi Systems, Ltd. said "I
am extremely pleased to welcome Micro Clinic into the Hitachi Systems
Group. We will expand innovative IT services to all of India-services
that will fuse Micro Clinic's business sites, and its abundant
personnel, technologies and know-how, with Hitachi Systems'
virtualization and cloud services; managed services such as data center
monitoring and operations; and security services. In doing so, we seek
to contribute to the development of India's economy, which continues to
show remarkable growth."
"I
am delighted that by this strategic acquisition, we have advanced the
original vision of the company and redefined the IT Services landscape.
Micro Clinic will be obtaining an expansive range of opportunities to
provide outstanding services in India as well as the rest of the world" said Mr. Tarun Seth, Managing Director of Micro Clinic India Pvt. Ltd. He further added, "By
combining Hitachi Systems' advanced technological capabilities with
Micro Clinic's human resources and robust customer and heterogeneous
product partner platforms, we hope to create new value and supply unique
services that will support customers' business innovation needs."
Hitachi
Systems and Micro Clinic will provide Indian enterprises, Japanese
companies and other foreign-affiliated companies in India with one-stop
services extending from procurement of IT equipment to systems design
and, integration, operation and maintenance. This will be done by
combining both companies products and services, technologies and
know-how, and business resources. In addition, the two companies will
work closely with the Hitachi Group companies in India in a push to
expand the IT services business in the country.
The
Hitachi Systems Group is targeting consolidated revenues of 500 billion
yen and an overseas sales ratio of 10% in fiscal 2015 under its
medium-term management plan, and pursuing various measures to this end.
This acquisition will strengthen and expand Hitachi Systems' global
operations, and is one element aimed at reaching these targets.
# # #
About Micro Clinic India Pvt. Ltd. (As of February 26, 2014)
Company name
|
Micro Clinic India Private Limited
|
Established
|
November 22, 1993
|
Headquarters
|
E-44/2, Okhla Industrial Area, Phase - II,
New Delhi -110 020, India
|
URL
|
|
Representative
|
Tarun Seth, Managing Director
|
Capital
|
12.5 million rupees
(20 million yen, at 1.6 yen = 1 rupee)
|
Net sales
|
769 million rupees
(1,230 million yen, at 1.6 yen = 1 rupee)
(for the fiscal year ended March 31, 2013)
|
Group company
|
Micro Clinic Software India Private Limited
|
Number of Employees
|
650 (incl. Group company)
|
Business
|
Hardware
sales and maintenance, systems integration, network integration,
security services, virtualization services, managed services, desktop
services
|
About Hitachi Systems
Company name
|
Hitachi Systems, Ltd.
|
Established
|
October 1, 1962
|
Headquarters
|
1-2-1 Osaki, Shinagawa-ku, Tokyo 141-8672
|
URL
|
|
Representative
|
Naoya Takahashi, President and Chief Executive Officer
|
Capital
|
19,162 million yen (As of March 31, 2013)
|
Net sales
|
339,956 million yen (for the fiscal year ended March 31, 2013)
|
Number of Employees
|
10,851 (As of March 31, 2013)
|
Business
|
Systems
integration business, systems operation, monitoring and maintenance
business, network services business and sale and development of
information-related equipment and software
|
About Hitachi, Ltd.
Company name
|
Hitachi, Ltd.
|
Established
|
February 1, 1920
|
Headquarters
|
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
|
URL
|
|
Representative
|
Hiroaki Nakanishi, President
|
Capital
|
458,790 million yen ( As of March 31, 2013)
|
Consolidated Net sales
|
9,041,071 million yen (for the fiscal year ended March 31, 2013)
|
Consolidated
Number of Employees
|
326,240 (As of March 31, 2013)
|
Business
|
Development, manufacture and sales of products and
provision of service across 10 segments:
Information & Telecommunication Systems, Power
Systems, Social Infrastructure & Industrial Systems,
Electronic Systems & Equipment, Construction Machinery,
High Functional Materials & Components, Automotive
Systems, Digital Media & Consumer Products, Others
(Logistics and Other services) and Financial Services
|
About Hitachi in India
Hitachi
started its business in India in the 1930's. Currently, Hitachi has
approximately 30 business bases and approximately 7,500 employees in
India. In addition to being a leader in construction machinery and
air-conditioning systems, the Hitachi Group in India is expanding on its
'Social Innovation Business', such as information &
telecommunication systems, power systems, industrial, transportation and
urban development systems. Together with further localization, Hitachi
aims to contribute to a sustainable society in India as well as the
country's economic growth. For more information about the Hitachi Group in India, please visit the website at http://www.hitachi.co.in/.
|
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