Narayan AmmachchiCalifornia-based outsourcer UST Global has acquired U.S. technology firm Xpanxion for an undisclosed price. The deal comes barely a week after UST Global announced the acquisition of Milwaukee-based engineering solutions company Kanchi Technologies.
UST Global will take on some 500 Xpanxion employees and 50 clients, as well as Xpanxion’s professional services units in Atlanta and Pune, India, and its rural technology centers in Nebraska, Iowa and Kansas.
“By acquiring Xpanxion’s unique cross-sourcing model that leverages talents from across the globe with US-based rural hubs, we aim to provide customers with cost-effective, secure, and collaborative solutions,” said Saurabh Ranjan of UST Global’s Managing Director, Global Operations. “This acquisition will enable UST Global to provide a complete range of quality software services for clients.”
Xpanxion will continue to operate independently but UST Global will integrate some of the acquired firm’s offerings into its portfolio.
The acquisition will expand offerings for both companies and boost access to offshore development centers and skilled resources, including analysts, business and technology consultants.
Atlanta-based Xpanxion provides cloud-based business application development, mobile application development, software testing services, and technology and business consulting.
“Xpanxion focuses on developing its technology services in rural areas of the US, while UST Global recently launched its Step IT Up America program,” said Paul Eurek, CEO of Xpanxion.
With about 65 customers and US$650 million in annual revenue, UST Global rivals Indian outsourcing firms such as TCS, Infosys and HCL Technologies. It is currently in the process of launching a delivery center in Costa Rica.
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