Virtusa, a global provider of digital strategy, digital engineering and IT services backed by EQT, could acquire to boost its international local delivery networks, said Jayajyoti Sengupta, chief sales officer and chief executive for growth.

These acquisitions will help the Southborough, Massachusetts-based company localize the delivery of its solutions, Sengupta said, noting it is in the process of establishing an Eastern European Delivery Center. Acquiring operations would be a shortcut to an organic effort that would otherwise take up to 24 months to complete, he added.

It has around 17 offices in the Asia-Pacific region, its core geography, as well as 11 in Europe and 10 in North America. Europe is playing a big role in Virtusa’s expansion into growth markets, and it would also consider buys in North America, Mexico, Australia and around Asia to boost existing bases, he said.

Ideal targets are established businesses that are already profitable and have strong customer relationships, Sengupta said. He said he does not rule out transformational transactions, declining to disclose revenue figures of suitable targets.

Virtusa is particularly interested in acquiring artificial intelligence capabilities, data-led software and cloud technologies, especially when it comes to boosting applications for its licensed platform ServiceNow, he said.

The executive said the recent acquisition of ITmagination, a technology consultancy focused on digital transformation, cloud computing, data analytics and artificial intelligence, is part of this strategy and emblematic of the type of targets Virtusa is looking for.

The company leverages existing relationships with investment banks as it continues to look for targets, partly through its private equity owner EQT, he added.

While a core M&A team is actively searching for targets, the company is open to receiving teasers, Sengupta said. It also receives references from customers and other industry connections and often takes part in competitive auctions, he added.

Virtusa has so far handled most of the financing for its deals via its own resources, the executive said.

It relies on a variety of banks and law firms for advisory services, especially when it comes to geography-specific counseling, he said, declining to name the firms.

Virtusa is a global provider of digital engineering and technology services and solutions for companies in the financial services, healthcare, communications, media, entertainment, travel, manufacturing and technology industries worldwide.

In 2020, Virtusa was taken private for USD 2bn by legacy Baring Private Equity Asia, which merged with EQT in 2022.