Altimetrik Acquires SLK Software: A Strategic Move Towards AI-Driven Solutions
Altimetrik, a pure-play company specializing in artificial intelligence (AI), data, and digital engineering solutions, has announced its acquisition of SLK Software, a prominent global technology services firm. The acquisition, valued at $600 million (approximately Rs 5,100 crore), was confirmed on Saturday.
Strengthening Capabilities and Customer Reach
This acquisition is set to bolster Altimetrik’s end-to-end enablement services, expanding its customer reach and accelerating its goal of achieving $1 billion in annual revenue.
Background on the Acquisition Deal
Earlier reports from ET on May 29 indicated that Altimetrik was in advanced talks to acquire SLK Software, with valuations ranging between $500 million and $600 million (Rs 4,270-5,100 crore). An exclusivity agreement has since been signed with SLK, solidifying the deal.
Competitive Landscape
In February, ET reported that various IT companies, including Mphasis and Hexaware Technologies, were also in contention to acquire SLK Software. This showcases a highly competitive landscape in technology services.
Recent Developments at Altimetrik
In addition to the acquisition, Altimetrik recently appointed Rajeev Jain—a former executive vice president at LTIMindtree—as its new Chief Operating Officer (COO), reinforcing its leadership team.
A Strategic Acquisition for Altimetrik
By acquiring SLK Software, Altimetrik aims to enhance its capabilities across various sectors, leveraging both companies’ strengths to accelerate modernization in enterprise platforms for their clients.
The Importance of AI in Business
Raj Sundaresan, CEO of Altimetrik, emphasized the importance of AI in driving business outcomes: “In today’s world, AI, and especially generative AI and machine learning, is the engine that is driving true business value.”
Commitment to Customers
Sundaresan reiterated the company’s intention to deepen its commitment to clients seeking digital and AI-driven solutions, which enable rapid business value creation.
Global Customer Base Expansion
With the completion of this transaction, the integrated entities will cater to over 150 global customers, including Fortune 500 companies. This acquisition will also enhance a partnership network that includes notable industry leaders such as OpenAI and AWS.
The Combined Workforce
The newly formed entity will employ over 10,000 professionals globally, assisting clients in their digital transformation journeys and offering innovative solutions for modernizing legacy systems through data and AI.
Industry-Wide Impact
This collaboration will address a diverse range of industries, including financial services, pharmaceuticals, technology, and manufacturing.
Enhancing the Digital Engineering Landscape
The merger of Altimetrik’s AI-first, platform-native engineering model with SLK’s comprehensive technology service stack aims to create a groundbreaking digital engineering platform.
TPG’s Role in the Acquisition
TPG Capital, which acquired a 60% stake in Altimetrik last year for $1.5 billion, is poised to support this strategic growth phase, according to Puneet Bhatia, co-managing partner of TPG Capital Asia.
Investment Thesis by TPG
Vivek Mohan, a business unit partner at TPG Capital Asia, commented on the acquisition as a testament to TPG’s strategy of investing in technology services that lead the data and AI transformation journey for customers.
Advisory Roles in the Acquisition
Avendus Capital served as the exclusive financial advisor for SLK Software, while EY acted in a similar capacity for Altimetrik and TPG, ensuring a well-structured transition.
Conclusion
This acquisition marks a significant milestone for Altimetrik as it enhances its offerings in the rapidly evolving technology landscape, ultimately fostering innovation and value creation for its clients.
FAQs
1. What is the value of the acquisition of SLK Software by Altimetrik?
The acquisition is valued at $600 million (approximately Rs 5,100 crore).
2. What are the primary benefits of this acquisition for Altimetrik?
The acquisition will strengthen Altimetrik’s capabilities, expand customer reach, and accelerate its goal of reaching $1 billion in annual revenue.
3. Who was appointed as the new COO of Altimetrik?
Rajeev Jain, formerly executive vice president at LTIMindtree, has been appointed as the Chief Operating Officer (COO).
4. What industries will benefit from the combined services of Altimetrik and SLK Software?
Industries include financial services, pharmaceuticals, technology, manufacturing, and more.
5. Who acted as the financial advisors for the acquisition?
Avendus Capital acted as the exclusive financial advisor for SLK Software, while EY acted in a similar capacity for Altimetrik and TPG.
