NIIT Technologies
Cluster: Ugly duckling
Recommendation: Buy
Price target: Rs296
Current market price: Rs228
NIIT Tech's UK acquisition
NIIT Technologies has acquired a 51% stake in the UK-based ROOM Solutions (RS), which is a niche player in the insurance space. RS clocked annual revenues of $25 million in the last fiscal and is profitable on the net level. It has an employee base of 120 professionals.
RS offers software solutions in the policy administration, risk management and business intelligence areas to a host of insurance companies in the UK and the other developed markets. Some of the reputed names on its client list are Atrium, Ace Global, AIG, Munich Re, Zurich and Excel.