Consulting major Electronic Data Systems (EDS) has finalised a $40 million deal to acquire Bangalore-based RelQ Software, which
specialises in software testing, validation, verification and quality assurance.
RelQ has 800 people and posted revenues of $22 million last fiscal. It is expected to record a revenue of $30 million in 2006-07.
RelQ will help the $21-billion EDS, which focusses on consulting, application management, maintenance, re-engineering, migration, technical support and testing, to ramp up its testing practice in India. EDS has over 17,000 employees here across varied verticals.
"Recently, a high-level team from EDS visited RelQ to conclude the deal and an official announcement is expected early next week," said a source. RelQ president Prakash Mutalik said: "It's only speculation and we would not like to comment."
Responding to an email sent by TOI, Bob Brand, global head (PR) of EDS said, "EDS does not comment on rumour and speculation regarding mergers and acquisitions."
RelQ is said to have been asking for a price of $60 million for many months, but EDS was willing to pay $40 million. One major reason for RelQ's recent climbdown could be its losing part of lucrative business with Vodafone
specialises in software testing, validation, verification and quality assurance.
RelQ has 800 people and posted revenues of $22 million last fiscal. It is expected to record a revenue of $30 million in 2006-07.
RelQ will help the $21-billion EDS, which focusses on consulting, application management, maintenance, re-engineering, migration, technical support and testing, to ramp up its testing practice in India. EDS has over 17,000 employees here across varied verticals.
"Recently, a high-level team from EDS visited RelQ to conclude the deal and an official announcement is expected early next week," said a source. RelQ president Prakash Mutalik said: "It's only speculation and we would not like to comment."
Responding to an email sent by TOI, Bob Brand, global head (PR) of EDS said, "EDS does not comment on rumour and speculation regarding mergers and acquisitions."
RelQ is said to have been asking for a price of $60 million for many months, but EDS was willing to pay $40 million. One major reason for RelQ's recent climbdown could be its losing part of lucrative business with Vodafone
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