Magellanic Cloud plans acquisition of U.S. firm for ₹200 crore, smaller firms for ₹100 crore  

Technology, e-surveillance and drone solutions provider Magellanic Cloud plans to acquire a clutch of firms this financial year by investing ₹300 crore, including a U.S. firm having operations in India for about ₹200 crore by May.

The proposed acquisitions form part of the geographical, technological or clientele expansion strategy, Managing Director and Global CEO Joseph Sudheer Thumma said on Monday.

The plan is to acquire a large firm and 4-5 smaller firms, he said, adding the U.S. firm is in the IT and ITeS space. The smaller companies, typically with annual revenues of around $40-50 million, to be considered will provide a platform and space in different geographies for Magellanic Cloud as it looks to explore new markets, including Japan. On the funds required for the acquisition, he said besides utilising internal accruals, the company may go for a preferential issue next month.

Besides the ₹300 crore, the company also plans to invest ₹200 crore on expansion of existing businesses, which includes drone manufacturing as well as e-surveillance services. The core business of the company is IT and ITES services, he said.

On the headcount, he said it is around 1,600 and spread across a clutch of firms under the holding company and set to touch 5,000 by FY27, on account of organic and inorganic growth.

The company, in a release, said with a strong focus on AI-driven transformation it is expanding its presence in e-surveillance, video analytics solutions and deep-tech solutions while generating substantial employment opportunities. It has also launched a cargo drone capable of carrying a 200 kg payload.