Outsourcing services provider Achievo has signed a deal to acquire Beijing Beifang Xinyu Information Technology Co. (BBX), a Chinese outsourcing company with 450 employees.
BBX offers outsourced software development and IT services to Japanese companies, including NEC, Nomura Securities Co., Toshiba, and Hitachi. The acquisition of BBX will boost Achievo's presence in Japan, the San Ramon, California, company said.
Financial terms of the deal were not disclosed. However, Achievo's acquisitions generally involve a mixture of cash and company stock, said Robert Lee, the company's chairman and chief executive officer (CEO).
After the acquisition of BBX goes through, the company will operate as a unit of Achievo and be renamed Achievo BBX. The company's CEO, Wang Shiqing, will continue to head the division.
Achievo specializes in software development for Java, .Net and embedded applications. The company's list of clients includes IBM, Sun Microsystems, and DaimlerChrylser, among others.
In recent years, the company has grown its operations in China through a string of acquisitions, including the 2005 purchase of Jeyo Computer Technology, in Guangzhou, and acquisition of Shanghai Wintech Software Co. in April. The company has also expanded in other countries through acquisitions, most recently with the purchase last month of Inproware, an IT services provider in Germany.
Looking ahead, Achievo plans to make additional acquisitions to expand its capabilities and reach into new markets, Lee said, citing Australia and Europe as markets where the company would like to grow.