Business

Aspire Systems buys 70% stake in RapidValue

City-based global information technology services company Aspire Systems, has acquired a 70% stake in Bengaluru-based RapidValue Solutions, which is into digital product engineering services and solutions, for an undisclosed sum.

Following the exit of venture capital fund Helion and other individual promoters from RapidValue, Aspire Systems becomes a major shareholders in RapidValue along with three co-founders.

Aspire and RapidValue will continue to operate as independent entities. The transaction is expected to provide a significant impetus to Aspire’s growth journey towards its goal of achieving $200 million revenues in four years, said Gowri Shankar Subramanian, chairman and CEO, Aspire Systems.

“This acquisition will enable Aspire to strengthen its capabilities in digital engineering, which is a key area of focus for enterprises and ISVs as they try to accelerate their digital transformation initiatives in these uncertain times. So far, we have been focusing on retail and banking and financial services. Now, we will enter into insurance space too,” he said.

“This transaction with Aspire will help us in scaling our services to a global footprint and offering transformative digital engineering solutions in the marketplace,” said Rajesh Padinjaremadam, CEO, RapidValue Solutions.

This is the eighth acquisition for $100 million Aspire Systems, which employs over 3,000 employees globally, while RapidValue with revenue of over $10 million employs about 400 people.

“Pandemic has affected our business. We hoped to post 20% year-on-year growth, but will be ending this fiscal with a marginal increase in revenue. Due to the pandemic, our goal of reaching $200 million in revenue would get delayed by a year,” said Mr. Subramanian.

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Printable version | Jul 6, 2020 11:49:13 AM | https://www.thehindu.com/business/aspire-systems-buys-70-stake-in-rapidvalue/article31957555.ece

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