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[May 10, 2006]
NIIT Technologies acquires majority stake in Room Solutions
(InsuranceNewslink.com Via Thomson Dialog NewsEdge)Global IT solutions provider, NIIT Technologies Limited, has taken a 51% stake in ROOM Solutions for USD25m in cash with a view to accelerating its growth.
This move combines expertise and resources, delivering a new range of products and services that will enable London underwriting organisations to deal effectively with the challenges posed by increasingly demanding regulatory regimes and intensifying global competition. It will also accelerate the globalisation of the highly successful approach ROOM has developed in London and recently extended to Bermuda and the USA, according to ROOM.
ROOM's management team will remain with the company and staff numbers within the company are expected to grow. The Board will comprise of two founder members of ROOM ad three from NIIT.
NIIT Technologies, headquartered in India and listed on the National Stock Exchange and the Bombay Stock Exchange, is a global company with operations in 14 countries. Europe accounts for 43 and North America contributes 40% of its revenue. With the NIIT Technologies investment, ROOM Solutions hopes to grow significantly. NIIT Technologies is known for its focus on innovative IT solutions and BPM (business process management) services focussed on complex back-office processes.
NIIT Technologies is focused on identified verticals-insurance, finance, transport, and retail--with expertise in each of these areas forming the foundation for the IT solutions it offers. ROOM Solutions will be the focal point for the global expansion of its commercial insurance sector business. In addition to expanding the operation in London, ROOM will extend its reach in the USA and Bermuda through the NIIT group.
ROOM Solutions Chairman, Marcus Broome said "The business strategy that ROOM has pursued over the last few years has seen the company expand rapidly. Our range of products has been extended to enable our London customers to improve operational performance at a time when the regulatory environment has become more demanding. With this strong foundation in place we have extended our customer base to the USA and Bermuda.
Over the last year we have looked at various ways of providing the company with more funds and resources to grow the company in a way that will sustain our leadership in the London Market and increase the international client base. NIIT Technologies is an ideal choice as their strategy of developing through the provision of high-value services to chosen vertical segments matches ROOM's vision for the insurance sector."
NIIT Technologies President C.N. (Madhu) Madhusudan, comments " In ROOM we found a company that has a deep understanding of the business challenges and operational processes within the commercial insurance sector. The company has a long-term record of anticipating new requirements within this segment and developing software that is widely recognised as being the best in its class."
This article is supplied by Insurance Newslink (www.insurancenewslink.com).
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