Patni Acquires US-Based ZAiQ Technologies
PressRelease: Patni computer (Nyse: PTI) also seems to be using the acquisition route to grow. This time its acquired ZAiQ Technolgies, a design and verification company, in Woburn, Mass. With this acquisition, Patni�s product engineering service becomes stronger by addition of ASIC design, verification and validation expertise.
Patni is already in Product engineering services, but now it seems they want to strengthen their hold and get a bigger pie in terms of revenue from this sector. According to a NASSCOM 2006 strategic survey report, Indian IT and ITES export revenues from engineering, R&D and offshore product development have grown tenfold from $300 million in 2001-2002 to over $3.1 billion in FY 2004- 05, and are projected to reach $3.9 billion by the end of fiscal year 2005- 2006.
Patni wants to make sure it is at least among the top 3 in this sector. Through the transaction, Patni obtains ZAiQ’s Application-Specific Integrated Circuit (ASIC) design capabilities and Intellectual Property (IP), as well as expertise in Field-Programmable Gate Arrays (FPGA) and System-on-a- Chip (SoC) technologies.
I like this deal for Patni, and all we can say is that, Patni is walking in the footsteps of Infosys towards becoming a future EDS or Accenture. All these Indian software companies are working on a similar plan and taking inspiration from the success of Infosys and TCS, they first develop in-house expertise and then go on global expedition to acquire the expertise which they lack thus becoming a software company where you can get all your service from integration, development, implementation, maintenance to outsourcing done by a single company. These companies have every bit of advantage over their western counterparts be it cost, quality, skilled manpower, and time zone difference. The future belongs to these companies and anyone betting on software should have atleast one of these companies in their portfolio, because these are the future leaders and its better to catch them young and watch them grow. By the way Infosys (Nasdaq: INFY) is easily the best of breed.
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