With $30-M on books, Cybernet-SlashSupport looks for acquisitions

By Madhav A. Chanchani (VCCircle.com)

CSS, which has $30 million cash on its balance sheet, is targeting firms with revenue size of up to $50 million.

Cybernet-SlashSupport (CSS), a technology operations management company, is aggressively looking for acquisitions with backing from its private equity investors. The firm has $30 million cash on its balance sheet and is looking to grow its topline inorganically. The California headquartered firm, which has its main development centre in Chennai, is looking to acquire a company which could augment one of its four businesslines, CSS interim CEO Sanjiva Singh told VCCircle. “Our goal is to complete a deal in this fiscal,” said Singh.

The revenue size of the taregt firm could be up to $50 million, and the entire acquisition will be funded from the company balance sheet.

The private equity backed firm has four lines of business – enterprise support services, customer support services, remote infrastructure management and outsourced product development. “We are looking at expanding in our present business lines, either by adding scale or by adding newer, deeper capability to those areas,” said Singh. CSS could also look at newer geographical or vertical access through acquisitions.

CSS has raised multiple rounds of private equity funding. SAIF Partners had invested $22.5 million in CSS in 2006, which involved picking up the stake from Baring Private Equity India and some through fresh issue. Then in 2007, CSS raised a $25 million in a round led by Goldman Sachs. Venture capital firm Sierra Ventures also holds a stake in CSS.

At the time it raised funding from Goldman, CSS brought all its group firms under one roof. These were Slashsupport, Synaptris and Ready Test Go.

The firm is being backed by its investors in its acquisition strategy. “SAIF will assist with evaluating potential acquisitions alongside CSS management,” said Ravi Adusumalli, Head of India investing at SAIF Partners. He also sits on the board of CSS.

Besides its global delivery center in India, CSS has centres in Philippines, Poland, Australia and the US. It could look at areas like Latin America.