US based Technology Services provider - Computer Science Corporation is acquiring Applabs Technologies Pvt Ltd. It is unclear whether CSC will buy only 50% stake held by Westbridge or go for a complete buy-out.

If the deal goes through, it will be second acquisition for CSC in a span of 10 days. On September 1, it bought Baltimore based Maricom Systems Inc.

Westbridge - an early stage investor in Applabs had mandated UBS to find a suitable buyer. Westbridge holds about 50% in AppLabs, the rest is held by the founder and CEO of AppLabs, Sashi Reddi.

WestBridge Capital first invested $7 Mn in 2004 in AppLabs followed by a subsequent round of $10 Mn in 2006. Westbridge has put Indecomm Global stake on the block as well.(Link to our article)

Transaction Reference: BL

Founded in 2001, AppLabs is a software testing company employing around 2000 employees and its clients include American Airlines, Experian, JP Morgan, VocaLink and National Australia Bank amongst others. It provides testing services in a range of areas such as performance, ERP, security, certification, test automation and managed testing.

Applabs has been expanding by making acquisitions in India as well overseas. Last year, it acquired Hyderabad-based ValueMinds, the developer of TestersDesk.com.In 2005, it acquired KeyLabs, a software and hardware testing company, followed by acquisition of UK-based testing consultancy firm IS Integration in 2006, for $37 Mn.

Shashi Reddy has started two other companies. He set up EZPower Systems, which developed products to build and maintain large-scale web applications. It was first acquired by DocuCorp and subsequently by Oracle. He also founded FXLabs, a game development company.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
14/09/11	WestBridge - Applabs - Computer Science Corporation	M&A	Computer Science Corporation	-
04/12/06	AppLabs Technologies - SVB India Capital(PE)	Private Equity	SVB India Capital Partners Fund	0.50
29/09/06	AppLabs Technologies - WestBridge Ventures I, Sequoia Capital	Venture Capital	Sequoia Capital India Growth Fund II	9.04
30/09/04	AppLabs Technologies - WestBridge Ventures I Round 1	Venture Capital	WestBridge Ventures I	7.03

 

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  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
WestBridge Ventures I	140	IT/ITES/Technology	www.westbridgecap.com

Company
Name	Promoters	Office	Competitor	Website
AppLabs Technologies Private Limited	Sashi Parvatha Reddi Gopala Krishna Parvatha Reddi	6th Flr Phase 1 Block 2 DLF Cyber City @ Hyderabad, Plot # 129 to 132, APHB Colony Opp. CMC Gachibowli		www.applabs.com

  Advisor

UBS Investment Bank