CSC Acquires AppLabs
News Release -- September 14, 2011
Acquisition Strengthens Applications Development and Management Business
FALLS CHURCH, Va., Sept. 14 – CSC (NYSE: CSC) today announced it has acquired AppLabs Technologies Private Limited, the world’s largest pure-play software testing and quality management service provider. The acquisition vaults CSC into a leadership role in providing application testing services in the high growth discrete testing market, supporting the company’s multi-year strategic growth plan.
AppLabs brings a strong portfolio of emerging technologies, proprietary methodologies and tools, and a specialized sales force to CSC which significantly enhances CSC’s capabilities in application testing services as well as shortening time-to-market. AppLabs complements CSC’s expertise in Financial Services, Healthcare, Manufacturing, Chemical, Energy and Natural Resources and Technology and Consumer verticals. Financial terms of the deal were not disclosed.
“Application Services continue to play an increasingly important role as companies adopt new technologies and cloud based services to improve the quality and performance and reduce the total cost of ownership of IT services,” said Michael W. Laphen, chairman, president and chief executive officer, CSC. “Acquiring AppLabs represents CSC’s continued commitment to our intense focus on growing the company’s applications development and management business as well as extending superior testing services to our clients and prospects.”
“As a pioneer in specialized testing services, AppLabs will strengthen CSC's portfolio of services that are offered to its customers,” said Sashi Reddi, AppLabs founder and CEO. “AppLabs customers will benefit from the geographic reach and breadth of services that CSC has to offer so that we can finally become truly global partners to our key customers. The 2,500 employees of AppLabs are delighted to be a part of the CSC family.”
According to research firm IDC, the independent testing and validation services market is growing faster than the IT services market and is forecasted for strong growth of 21 percent compound annual growth rate (CAGR) through 2013.
With 2,500 employees, a strong leadership team, an offshore delivery center in Hyderabad, India, sales and delivery offices in London, Philadelphia, Pa. and Lindon, Utah, this acquisition enhances CSC’s ability to support existing customers, add a robust set of new clients, and advances CSC’s position to pursue and win new business.
UBS Investment Bank acted as exclusive advisor to Applabs on this transaction.
CSC is a global leader in providing technology-enabled business solutions and services. Headquartered in Falls Church, Va., CSC has approximately 93,000 employees and reported revenue of $16.2 billion for the 12 months ended July 1, 2011. For more information, visit the company’s website at www.csc.com.
AppLabs Technologies Private Limited was founded in 2001 by Sashi Reddi and funded with investments from WestBridge Ventures I LLC & WestBridge Ventures II LLC. AppLabs is headquartered in Hyderabad India, and has offices in the United States and United Kingdom.
AppLabs' 2,500 employees provide specialized testing services to fortune 500 companies world-wide. For more information, visit the AppLabs website at www.applabs.com.
All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended April 1, 2011 and any updating information in subsequent SEC filings. The company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.