Veltris is in talks with acquisition candidates and aims to close three to five add-on deals within the next 18 months, CEO Hiral Chandrana said.

Backed by Trive Capital and BayLink Capital, the Milpitas, California-headquartered company provides digital product engineering services in the healthcare, communications and manufacturing sectors.

The company is interested in acquiring businesses in the fields of data and artificial intelligence (AI), engineering R&D services, digital product engineering services and industrial AI, the CEO said.

Ideal candidates have revenues between USD 10m and USD 30m, he said, adding that Veltris would look at larger players if they are a good fit. It looks at targets globally but would prefer businesses with approximately 70% of their customer base in the US, he said.

Veltris has a list of targets on its radar and talks with some of them are taking place, the CEO said. The objective is to acquire 100% of the target, he added.

On 31 March, the company announced the acquisition of BPK Technologies, a specialist in custom software development solutions with a strong focus on dental service organizations, dental practice management systems, health systems, edtech, and banking.

The M&A efforts are managed in-house, he said. Prior to Veltris, Chandrana, who was appointed CEO in September 2024, was CEO at Mastek, where he aggressively scaled the US business through organic growth and M&A.

The CEO believes that this is a good time to buy. He said that there are many opportunities in the market and suggested that because of the current uncertain macroeconomic situation, transaction prices are likely to reduce in the coming six to nine months.

Deals with be financed with a mix of Veltris’s own resources, debt and equity from the investors, he said.

Veltris, which is profitable, forecasts 25% revenue growth this year, the CEO said. He declined to disclose further financials.

It plans to grow its headcount from the current 650 to approximately 850 by the end of this year, he added. Besides its headquarters in California, it has subsidiaries in India and Canada and remote teams in other locations, he said.

Veltris offers “chip to cloud” product development services through design, architecture, development, testing and deployment. Its customers include small and medium-sized businesses and Fortune 500 enterprises.

The company focuses on providing services in niche markets such as health tech and information security networks, the CEO said. He added that approximately 90% of its revenues are generated in the US.

According to the CEO, Veltris does not have direct competitors. Other players in the space are L&T Technology Services (LTTS) and Persistent Systems, he added.

Veltris was formed in 2023 through the merger of Wavelabs Technologies and West Agile Labs.

Veltris acquired 100% of BPK, which has approximately 150 employees, the CEO said. The integration is expected to be completed within 90 days from the deal, he added.