Ray of Growth: Crayon Acquires Kryptos
Ray of Growth: Crayon Acquires Kryptos
Norwegian firm Crayon has acquired an 80% stake in Chennai firm Kryptos Networks. The all-cash deal amounted to around INR 240 million. Through this deal, this company from Norway has entered into the Indian subcontinent for the very first time.
Crayon Group will now expand to 7 cities from its current number of 4. The corporate group is planning to invest $12 million in the Indian market over the span of the next few years. This will lead to a 5 fold rise in the Chennai based firm towards the end of 2014. The Indian unit will serve as a back-office for the international clientèle.
Founded by entrepreneur Prasanna Ram in the year 2007, Kryptos is currently operating within the software licensing space according to the pay-per-use model. The firm is involved in the license management of well-known software products including Microsoft, Symantec, VMWare and Citrix. Kryptos caters to leading service providers HCL, Wipro and Infosys.
Kryptos owns about 85% of the share as per the $10-12 million pay-per-use market for software licensing. The Chennai-based firm will continue to operate under its own name but be part of the Crayon Group as well. Kryptos has renowned clients such as TCS, HCL and Infosys and it earned revenues of around INR426 million last year.
Krptos is a licensing and Cloud advisory firm based in Chennai. The company will handle back-end processes for its international clientèle. The global headcount of Kryptos officials will now rise to 100 consultants towards the close of the present fiscal.
Crayon Group is a leader in software asset management and it has a presence in over 23 nations. It offers licenses from known companies. The CEO of Kryptos Prasanna Ram has indicated the merger will be of great importance for the existing clients of the company who are looking to expand abroad.
Crayon is among the 10 Microsoft partners in the world and it has acquired around 80% of the company. The firm plans to invest over $10 million in the next 2 years in India.
Jens Rugseth, chief executive officer of Crayon Group has been quoted as saying "Right from our entry into Asia, we have been planning to enter India either organically or inorganically. In Kryptos Networks, we found great value and services that are in sync with Crayon's global way of functioning that made us consider the brand. With this entry, we are confident of adding more value to the services we offer to large clients globally, that have a presence in India, and also to the organisations here."
Kryptos currently has presence in 4 metro cities namely Chennai, Mumbai, Bangalore and New Delhi. With the latest deal, this firm is set to expand its span of operations and expertise through an enriching partnership with Crayon.
