Hitachi Systems has reportedly made an announcement that they have concluded a share purchase agreement and shareholders' agreement to bolster the IT services business in India.
Specifically, Hitachi Systems will acquire approximately 76% of Micro Clinic shares and rename the company as Hitachi Systems Micro Clinic Pvt. Ltd. Looking ahead, Hitachi Systems and Micro Clinic will implement procedures aimed at completing the share transfer by the end of March 2014.
In India, demand for IT services is growing rapidly. This reflects both the accelerating pace by which Japanese and other overseas companies are entering the Indian market, and also the expansion of Indian companies' IT investment accompanying the business growth.
Hitachi sees India as an important region in its global strategy and is stepping up development of the Hitachi Group's Social Innovation Business in the country. Hitachi aims to grow revenues in India by nearly three times to 300 billion yen by the fiscal year ending March 31, 2016, compared with the fiscal year ended March 31, 2012. In this context, Hitachi Systems, a core company of Hitachi's Information & Telecommunication Systems Business, has been exploring ways to obtain an IT services business platform and expand business in India, where rapid economic growth is under way.
Meanwhile, Micro Clinic is one of India's leading IT services companies. With 15 business sites in major cities across India, and approximately 150 satellite offices, Micro Clinic provides a broad range of IT services centred on the supply of IT platforms and maintenance services. Furthermore, Micro Clinic is working to strengthen virtualization services, managed services and other services, with the aim of driving further business expansion.
Against this backdrop, Hitachi Systems and Micro Clinic have agreed that Hitachi Systems shall convert Micro Clinic into a Group company.
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