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| EmergingMarketsNOW |
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| Thursday, July 03, 2008 |
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Cisco to Invest in Russian Technology Startups; Announces Anchor Investment in Almaz Capital
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Cisco made an anchor investment in Almaz Capital Partners, a VC firm that invests in Russian-related technology, media, and communications companies. In collaboration with Almaz, Cisco invested in Almaz Capital Russia Fund I, L.P., which was initially closed at USD 60 million. Yoav Samet, the Head of Cisco's corporate development for Israel, CEE, and Russia/CIS, will head the initiative.
Almaz Capital Partners will invest in high-growth small- and medium-size companies in the technology, media, and telecommunications sectors as well as manage the fund's investments. Cisco will also seek investment opportunities in technology-related startups in the region directly.
Currently, Cisco has more than USD 2 billion VC investment under management; it has been an active equity investor in emerging markets.
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ARC Capital to Acquire 45% Stake in China's Shaanxi University
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ARC Capital Holdings (ARCH), a China-based investment company, is acquiring a 45 percent in a private university (name undisclosed) in Shaanxi, China, for USD 71 million. This will mark ARCH’s second investment in the Chinese education sector.
ARCH is a closed-end investment company that invests in the retail and consumer-driven sectors. While its investments are focused on China, it also makes deals in neighbouring Asian countries.
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Dubai World Teams up with Roskommunenergo for Major Russian Deal
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Dubai World along with Roskommunenergo are acquiring Russian leading power producer OAO OGK-1. Roskommunenergo, a Russian electricity supplier who operates in 48 regions of the country, will purchase a 75 stake from the government for USD 5.33 billion; it will subscribe to a new share issue as well. Dubai World will act as a partner in the deal, providing a payment guarantee of USD 100 million.
OGK-1 is among the six wholesale generation companies being set up a separate units following the Russian government’s move to privatize its former power monopoly, RAO Unified Energy System. It has six power plants in the country, with a total generating capacity of about 9.5 gigawatts.
Dubai World is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across industry segments and projects that promote Dubai as a hub for commerce and trading.
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| Private Equity and M&A Activity |
Leyou Receives $37Mn in Funding
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Leyou.com received funding worth USD 37 million from international investment firms including Deutsche Bank Group, and AsiaVest Partners, TCW/YFU Ltd. (AVP). The funding will be used to increase Leyou’s market share. Leyou plans to set up 100 stores in 10 cities in the next one year, and 1,000 stores in 100 cities within five years. Established in 1999, Leyou.com was the first e-commerce website in China specializing in maternal and infant/child supplies.
Founded in 1995 and headquartered in Shanghai, AVP is a leading VC firm investing in private growth companies offering innovative technology in the US, Taiwan, China, and Hong Kong . |
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Cisco to Invest in Russian Technology Startups; Announces Anchor Investment in Almaz Capital
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Cisco made an anchor investment in Almaz Capital Partners, a VC firm that invests in Russian-related technology, media, and communications companies. In collaboration with Almaz, Cisco invested in Almaz Capital Russia Fund I, L.P., which was initially closed at USD 60 million. Yoav Samet, the Head of Cisco's corporate development for Israel, CEE, and Russia/CIS, will head the initiative.
Almaz Capital Partners will invest in high-growth small- and medium-size companies in the technology, media, and telecommunications sectors as well as manage the fund's investments. Cisco will also seek investment opportunities in technology-related startups in the region directly.
Currently, Cisco has more than USD 2 billion VC investment under management; it has been an active equity investor in emerging markets.
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IFC InfraVentures Makes First Investment in Collaboration with REI
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The International Finance Corporation (IFC) and Reykjavik Energy Invest (REI) have signed an agreement for exploring and developing geothermal resources in Djibouti, East Africa. This is the first investment of IFC InfraVentures, a USD 100-million fund that supports infrastructure development in weak economies globally.
The Djibouti project is located in the geothermal area of Lake Assal, the lowest point in Africa at 157 meters below sea level. IFC InfraVentures will provide 35 percent exploration costs of the project, including full feasibility studies and exploration drilling for the geothermal plant.
REI is Reykjavik Energy’s international business development and investment arm. It collaborates with companies to develop geothermal areas.
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Ideacts Innovations Receives $5Mn Funding from Sequoia Capital
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Sequoia Capital India invested USD 5 million in Ideacts Innovations, an Indian Web-based advertising platform. R. Ramaraj, Senior Advisor, and Mohit Bhatnagar, Operating Partner, at Sequoia Capital India, have joined Ideacts’ Board. Ideacts will use the funding amount for technology development and retail operations.
Established in 2007, Ideacts develops a desktop application—CLINCK—targeted at cybercafe users. The application offers a desktop interface to users, providing shortcuts to Internet browsers, messengers, system shortcuts, search, news, entertainment and online storage. Users will simultaneously witness advertisements from diverse companies.
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TVS Shriram Growth Fund Raises $115Mn
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TVS Shriram Growth Fund, a PE fund established by the TVS Group and the Shriram Transport Finance group, raised a USD 115-million fund that will invest in growth-stage businesses. Following 4–5 deals of the fund, it will raise additional corpus worth USD 115 million. High networth individuals, institutional investors, and group companies also invested in the fund.
The fund plans to invest in 6–8 companies over the next year, primarily those based in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Maharashtra, and Gujarat.
The fund will acquire minority stakes worth USD 2.5–12.5 million. Its focus will be on consumption-related sectors, such as healthcare delivery, privatized education, hospitality, speciality retail, food and agro, and consumer media and entertainment. It will seek deals in emerging tier II as well as III cities and metros.
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Arcapita Forms JV with Mapletree Investments
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Arcapita Bank, a Bahrain-based international investment firm, and Mapletree Investments Pte Ltd, a Singapore-based real estate company, have become JV partners in Mapletree Industrial Trust (MIT), a private real estate fund that owns high-rise, ready-built industrial properties worth USD 1.3 billion in Singapore.
Arcapita will hold a 56.5 percent stake in MIT, while Mapletree will hold a 25.1 percent stake. The remaining will be held by Mapletree Industrial Fund (MIF), a pan-Asian private real estate industrial fund sponsored by Mapletree. The portfolio includes a wide range of differing industrial properties, including 39 blocks of flatted factories, 12 amenity centers, one ramp-up and six stack-up buildings, three multi-tenanted business park buildings, and one warehouse building.
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| Offshoring and Outsourcing News |
SemanticSpace Announces Acquisition of Prolifics
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SemanticSpace Technologies, an Indian IT outsourcing company, announced the acquisition of Prolifics, a US-based software consulting firm specializing in IBM technologies, for USD 40 million in a cash deal. The company will make an initial cash payment of USD 26 million; the remaining amount will be paid in the form of earn-out over the next two years. In addition, the company acquired the assets of Prolifics Arsin, a subsidiary of Prolifics and a testing solutions company, for over USD 1.5 million.
Post-acquisition, Prolifics, SemanticSpace Technologies, and Arsin will jointly operate as SemanticSpace Group. The organization will employ over 1,500 professionals, with approximately USD 100 million in revenue on a proforma basis. Prolifics’ IBM technologies-focused high-value services complement services offered by SemanticSpace. The merged entity will have a strong presence across the US, Europe, and Asia Pacific. Prolifics will continue to be operated by the same management team. |
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iGATE Expands Operations in Chennai
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iGate, an India-based global integrated technology and operations company, is expanding its Indian operations by establishing a delivery center in Chennai. The facility will be located in the Special Economic Zone in DLF Info City, Chennai. The initial phase of the company’s operations in the facility is expected to start by 4Q 2008. In addition, it plans to recruit over 500 professionals over the next two years in Chennai, increasing the Chennai headcount to 1,200. The company is expected to invest approximately USD 7.85 million on infrastructure and technology for the facility.
The facility will cater to clients from the media and entertainment domains. Solutions delivered by the facility include digital rights management, content management, workflow applications, revenue management, and applications for the back-office operations of casinos.
In addition, the company plans to expand operations in Bangalore and Hyderabad with an investment of USD 30 million and USD 4 million, respectively. |
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BMC Software’s BSM Suite Selected by Unisys
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Unisys, a US-based IT services provider, selected the Business Service Management (BSM) suite of BMC Software, a US-based IT services and software company, to support its IT outsourcing services across the Asia Pacific region. Services offered by the suite include BMC asset management, discovery, performance management, and monitoring solutions.
Lee Ward, the General Manager for Unisys Outsourcing and Infrastructure Services Delivery, Asia Pacific, stated that the company selected these solutions to ensure that clients across the globe receive quality services. Solutions offered by BMC will assist the company in managing the assets of clients with increased problem solving and resolution, optimized IT systems performance, and accurate management of IT service level agreements. |
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WNS Enters into Strategic Alliance with ARC
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WNS, an Indian BPO services provider, entered into a strategic alliance with the Airlines Reporting Corporation (ARC), a US-based provider of financial settlement solutions and data analytical services for the travel industry. With this, WNS aims to extend its presence to the airline and tourism domains.
Both the companies will identify opportunities for establishing operations in the travel industry. In addition, the partnership will enable ARC to deliver comprehensive airline-specific finance and accounting services portfolio to its clientele. Both the companies will integrate their data analytics resources for the travel industry. |
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