42.Silverline Technologies: Acquisitions Bellwether

Silverline was on a takeover spree in fiscal 2000-01. It acquired Hong Kong-based IT consultancy firm Sky Capital International for $22 million. It thus formally created a base in the Asia-Pacific and gained 50 customers of SCI. This helped Silverline create revenue streams away from the US. It also acquired

SeraNova, a US-based Internet solutions provider, in a deal valued at $99 million.

Silverline registered a growth of 40% over the previous year–against revenues of Rs 195 crore in 1999-00, it garnered Rs 273 crore this year. This was slower than its growth of 77% in the previous year. Exports continued to contribute 98%, while the offshore-onsite ratio was pegged at 68:32. The company’s net profit almost doubled from Rs 70 lakh to Rs 1.3

crore. The company also consolidated its development activities, with three centers in

Chennai, Hyderabad and Mumbai. A realignment of projects was carried out so that all work for a single client was managed at one center. It also joined Palm’s Enterprise alliance to offer mobile e-business applications.