Infosys BPO establishes a deal to Acquire US Based McCamish Systems
Infosys BPO Limited, the business processing outsourcing subsidiary of Infosys Technologies, establishes a deal today to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States. On the other hand Infosys BPO operates in India, the Czech Republic, China, the Philippines, Poland, Thailand, Mexico and Brazil and employs over 16,400 persons. It closed FY 2008-09 with revenues of US $316.2 million.
Founded in 1985, McCamish Systems provides innovative solutions to the insurance and financial services industries leveraging their proprietary VPAS, PMACS and Deferral platforms. Consistently rated among the top platforms in the industry, VPASsupports both traditional and non-traditional life insurance and annuities. McCamish Systems also offers integrated sales and administration support solutions that are 409A-compliant to the retirement and financial services industries. The company counts half of the top 20 insurers among its many clients. For the year ended 31 December 2008, McCamish Systems reported revenue of USD 38.2 million. The company has approximately 260 employees based in their Atlanta delivery center.
The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is USD 38 million with up to an additional USD 20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The acquisition is expected to enhance Infosys’ capability to deliver end-to-end business solutions for the insurance and financial services industries.
“We look forward to this combination with McCamish, and welcome an exceptional group of professionals with strong skill sets to the Infosys family who will enrich our service capabilities in the USA,” said Amitabh Chaudhry, CEO and MD, Infosys BPO. “The deal will enable us to bring together a convergence of operations and technology. Infosys BPO has in-depth knowledge of the insurance and financial services sector, and this deal reinforces our leadership position in providing business platform services. Also, this will contribute positively to our strategy of growing non-linear revenue.” he added.
J. Gordon Beckham Jr., President and CEO, McCamish Systems said, “McCamish wakes up every day with one objective in mind – delivering world-class business solutions to our clients through continuous improvement. Our combination with Infosys is wholly consistent with this objective. Leveraging the domain expertise of our associates and platforms with Infosys’ industry-leading technology and BPO capabilities will be a game changer for the insurance and financial services industries. We are ready to roll.”
The combination is expected to enable McCamish to service larger portfolios of transactions for clients and expand into global markets. This will establish Infosys as a key player in providing business platform services.
