AppWorks acquires BigDrop

Gurgaon based IT servicing and consulting company AppWorks has acquired BigDrop, a custom software development startup which offers solutions to other startups, SMEs and large companies. AppWorks will leverage the capabilities of BigDrop engineers to enhance its capabilities in services, products and digital marketing.

AppWorks, which started as a niche IT servicing and consulting company in 2008, has evolved into a holding company with strong capabilities in building IT solutions especially mobile apps, offering consulting services to MNCs on improving their software engineering practices, upskilling freshers to make them employable, and collaborating with startups to help them launch in the market. It has a development team of 50 engineers.

AppWorks is now becoming a collection of LOBSs – BigDrop, OrganIQ, UpSkill plus a host of startups. The bootstrapped startup had around 25 clients including SoftAge, India Accelerator, Just Rokket and VConnekt. Recent acquihires include ride-sharing startup Lyft acquiring Pune based startup Finite Paths, Ixigo acquiring mobile content sharing app Reach, Online Tyari acquisition photo and video sharing app Pix, and UpGrad acquiring corporate training startup Pyoopil Education Technologies.

Capillary Technologies buys Sellerworx

Capillary Technologies Pvt. Ltd, which offers customer relationship management, software and marketing analytics for retailers, has acquired Sellerworx Online Service Pvt. Ltd for an undisclosed amount in a stock and cash deal to strengthen its product portfolio.

Apart from offline retailers, Capillary now offers products to online sellers and marketplaces through one technology platform instead of sellers using multiple channels. Founded in 2008, Capillary raised an undisclosed amount as a loan from InnoVen Capital in August. Sellerworx provides products and services for retailers and merchants to manage the inventory, pricing, returns across different marketplaces and a dynamic price management tool for marketplace sellers.

It was funded in 2015 by Axilor Ventures. With a clientele across 30 countries, Capillary claims its products are being used in over 20,000 stores by more than 200 large enterprise retailers including Unilever, Wal-Mart Stores Inc and the Landmark Group, Calvin Klein, Gap, Starbucks, Pizza Hut and Puma.

BlackBerry acquires Good Technology

Canada’s BlackBerry Ltd said it will buy rival mobile software provider Good Technology Corp for $425 Million to boost its ability to help corporate clients manage smartphones running on different operating systems. The cash deal may help BlackBerry a one-time smartphone pioneer win new customers for its service business.

BlackBerry shifts focus to device management software for enterprise customers. More than half the devices running on Good’s systems are Apple Inc. products such as the iPhone. Company expects to realize about $160 Million in revenue from the acquisition in the first year after the deal closes.

BlackBerry has recently made acquisitions to expand its services business. Earlier they had announced deals for Secusmart, Movirtu, and WatchDox. BlackBerry has always been about delivering secure mobile solutions. It’s easy to forget now that BlackBerry was once the undisputed leader in enterprise mobility, but when Apple and Android came along, BlackBerry quickly lost its dominant position.

Overall, this looks like it could be a good deal for both companies, giving Good Technologies a soft landing without having to risk the dangers of IPOing in an increasingly hostile market, while filling out BlackBerry growing security platform without putting out a huge amount of cash.

Cognizant Buys Trizetto

Cognizant is a global leader in information technology, consulting, and business process services. It provide services such as claims processing, billing and call center operations to insurers, hospitals and some state run health care exchanges set up under President Barack Obama’s affordable care Act, as known as Obamacare. Colorado based Trizetto provides information technology services, including care management and the administration of benefits. 

Cognizant struck up its biggest deal, acquiring healthcare IT services provider Trizetto Corp for $2.7 Billion. It is the biggest acquisition in Indian IT sector. Healthcare is undergoing structural shifts due to reform, cost pressure, and shifting responsibilities between payers and providers. Trizetto will provide Cognizant to increase their market share. In 2008, Apax acquired Cognizant, a London based private equity firm. Trizetto was built up through 16 acquisitions in last 15 years, according to their website. It serves about 350 health care plans and supplies software to almost 245,000 doctors and other care providers.

Following this acquisition, Cognizant grip on the segment will increase further, leaving behind peers like WIPRO, Infosys, and TCS. At present, healthcare accounts for around 26 percent of Cognizant revenue, which is estimated to go up to 30 percent on integration with Trizetto. Cognizant and Trizetto have had a long-term relationship. This acquisition represents a great opportunity to integrate services across three horizons. Traditional IT services, high growth businesses like management consulting, business process services, and IT infrastructure services and will provide greater value to clients.

There are lot of acquisitions and changes going on in Indian Healthcare sector. E-commerce sector is focusing on providing medical facilities online. Companies like Ranbaxy, Cipla, and Sun Pharma are into manufacturing of new medical products. IT sector is all set to provide services to clients and hospitals. Tech giants are developing products which includes health apps or which can tell people health status. We can assume that technology is going to play a major role in Healthcare sector and it is going to benefit millions of people. It is estimated that Healthcare business is to grow at a rapid pace.