GlobalLogic to dilute 20 percent stake in 2011

GlobalLogic, a software product
research and development company, is planning to get listed in United
States and the company will dilute 20 per cent stake for this
listing. “We have zero debt and have enough funds. The idea of
listing is based on our growth trend. We have assessed that in
future, we may need different stakeholding pattern. Our investors
jointly hold 50 percent stake in the company and rest of the 50
percent are with management and employees,” said Peter Harission in
an interaction with CIOL. Harrison spoke to CIOL on the sidelines of
Innovate - an industry event organized by the company to collaborate
and connect with people to encourage research and development of
software products and services. Venture capitalist firms namely New
Enterprise Associates (NEA), Sequoia Capital, New Atlantic Ventures
and Goldman Sachs have invested in the company and jointly hold 50
percent stake. GlobalLogic is yet to finalize the bourses on which
the company will get listed but sources involved in the process
expressed that the company is likely to get listed on New York Stock
Exchange (NYSE).

Both investors and management will
shell out 10 percent stake in the company at the time of listing. The
listing is likely to take place in second half of 2011. “In the
second phase of equity dilution, we may look for listing in India as
well,” said Harison. Harisson mentioned that the company has plans
for expansion in India and probably invest between $20 million to $40
million in the country. “Over the next 12 months, we have plans to
invest between $40 million to $80 million globally. More than half of
these funds will be invested in India,” said Harrison.

GlobalLogic has delivery centres in
Noida, Nagpur, Pune and Bengaluru. The company is soon going to
set-up its office in two more cities by the end of this financial
year. The company is also looking for acquisition of Software Company
in India to add domain expertise in the service that it offers. “We
are looking for companies that is 10 to 20 percent in size of
GlobalLogic and has headcount of between 300 to 1,000 people. This
acquisition is aimed to increase our domain expertise,” added
Harrison. Harrison refused to name the company that GlobalLogic is
considering for acquisition but hinted that GlobalLogic is looking to
acquire new companies located in South India.