New Delhi: Hinduja Global Solutions (HGS) today said its subsidiary will acquire 57 per cent stake in digital consulting services firm Element Solutions for USD 5 million. The deal, which is expected to close in the next 15 days, will help grow the digital marketing and digital experience service business of the company.
"Hinduja Global Solutions UK Ltd has today entered into a definitive agreement to acquire 57 per cent equity stake in Element Solutions LLC, USA...Post acquisition, HGS will add over 75 employees comprising strategic thinkers, digital marketers, user-centric designers, software engineers and developers, of whom 33 are in the US and the rest in India," HGS Chief Executive Officer Partha DeSarkar said.
Element Solutions provides high-end digital strategy and solutions, data-driven marketing and cloud managed services areas to its customers. With over 160 digital engagements, the company supports over 35 top Fortune 500 brands, primarily in the healthcare, manufacturing and retail industries.
"As part of our strategy to drive digital-led transformation for clients, HGS has been investing significantly in technology and solutions to re-imagine customer experiences. The investment in Element Solutions expands on this strategy and helps position us as an end-to-end digital transformational leader who can impact the entire customer lifecycle for brands," DeSarkar said.
The acquisition of Element will help HGS Interactive (HGSi), HGS' digital services division, to strengthen its Buy-side portfolio by adding new capabilities and expertise in customers' digital experience and digital marketing, he added.
The deal will also bring together a complementary client base across sectors and add significant onshore presence for HGSi, he said. In a regulatory filing, HGS said the company will take on its rolls around 44 employees and acquire certain assets from a subcontractor of Element Solutions LLC in India for a consideration of Rs 25 lakhs.
Set up in 2003, Element Solutions is based in Chicago and has an office in Austin. Its revenue stood at USD 8.4 million in 2017. Earlier this week, HGS had announced that its subsidiary in the US will acquire AxisPoint Health for USD 14 million to strengthen its healthcare portfolio with new capabilities in clinical services segment....