Specialty media house CyberMedia has acquired 49 per cent stake in Publication Services, Inc (PSI) through its wholly owned US subsidiary, CyberMedia India LLC. CyberMedia has an option to acquire 100 per cent stake in PSI in three years’ time.
PSI, with a 50-member team and FY06 revenue of $2.7 million, provides a wide range of book and document production services for publishers. Its repertoire of clients includes McGraw-Hill, Cambridge University Press, Harvard University Press, Elsevier Science, John Wiley & Sons, and Oxford University Press, among others. The company is strategically located in Champaign, Illinois.
The acquisition of PSI provides CyberMedia access to a client base and team of US-based professionals for growing its content outsourcing business. According to industry estimates, the global opportunity for publishing outsourcing is estimated at $8.2 billion. The Indian market for publishing outsourcing is expected to grow at a CAGR of 38 per cent from $200 million in 2005 to $1.1 billion by 2010, driven by availability of trained workforce proficient in English language and publishing, offering high quality at competitive prices.
PSI is expected to expand its scope of projects to its clients through this tie-up and acquire new clients by providing cost effective content services. CyberMedia has a team of 130 professionals in India with expertise in original content creation, design, typesetting, data conversion, archiving and digital asset management.
CyberMedia CMD and CEO, Pradeep Gupta, said, “We are excited about our partnership with PSI and, together we can embark on a faster growth path in addressing the content outsourcing market with a highly experienced and quality driven team. This is the next step in CyberMedia’s advent towards going global.”
Dr William Stout, CEO of PSI, stressed, “The alliance between CyberMedia and Publication Services represents an ideal partnership in the current global publications marketplace. It combines editorial expertise, project management skills, and US client base of PSI with cost-competitive, high quality typesetting, graphics, and proofreading skills of CyberMedia. I look forward to a long and rewarding partnership that will stimulate strong growth and enhance profitability for both companies as well as provide unparalleled publishing services worldwide.”
Rajeev Seth, President, CyberMedia Services, who will manage the partnership on behalf of CyberMedia, said, “We look forward to scaling up and making a significant impact in the publishing services outsourcing domain with committed quality of services across a range of platforms.”