Bangalore based social business intelligence startup Simplify360 is keeping its acquisition rumors hot. In a latest report from ET, India’s fifth largest IT services company Tech Mahindra is discussing a stake acquisition in Simplify360, as part of strategic initiatives to bolster SMAC (social, mobility, analytics and cloud services) offering to clients.
Sources are stating that TechM could buy a large minority stake initially with a clear roadmap to buy out Simplify360 in the next three years.
TechM has declined to comment on the development stating it as speculation. However, Bhupendra Khanal, CEO of Simplify360 adds that the $2.7-billion IT company is already a reseller of Simplify360 products, which is marketed to large clients as part of an integrated suite.
Khanal further informed that the five year old startup has hired PwC to help it identify a strategic investor. “We have not completely kept financial investors out, but it’s better if we get a strategic investor on board. We are open to offload a 20-25 per cent stake and that’s our comfort zone,” Khanal added.
Indian IT companies are ramping up their SMAC wings to meet the growing demands of the current times. TechM being a customer of Simplify360 makes the speculation somewhat believable.