Chennai: In a case of a service provider acquiring its client, the Chennai-based TexTech International Private Limited has acquired the US-based Stratford Publishing Services (Brattleboro, Vermont) and the Stratford brand for 0.5 million. Following the acquisition, TexTech has become a $3million company and one of the larger players in the knowledge process outsourcing (KPO) vertical in publishing, with projected revenue of $5 million for the year 2007-08.

TexTech, promoted by Multivista Global Limited, a $20 million Chennai-based printing house is less than 18 months old and has already established a customer base across four continents: America (United States), Europe (United Kingdom), Australia, and Asia (India). Its customers now include the world's largest publishers of higher-education, school, and trade books.

Addressing the media, TexTech's CEO AVR Venkatesa, said, "As the industry consolidates, the Stratford acquisition gives us a strong sales and marketing presence in the largest market. Our hybrid delivery model, which combines more than 20 years of book production experience in the US with the talented workforce in India, gives our customers high quality at lower cost".

He further added "We aim to become one of the largest publishing services companies in India through both organic and inorganic growth. We see strong growth in all our customer geographies and segments".

Recently, TexTech was awarded a significant contract by one of the largest US college textbook publishers to provide programme management and quality assurance services for their next-generation custom publishing business.

Commenting on the merger, James E. Bristol, erstwhile owner of Stratford and now a stakeholder in TexTech, said, "Our customers clearly wanted us to be global and the merger with TexTech gives us an opportunity to be a leader in our markets.

Outsourced publishing services are estimated to be a $4.5 billion market, of which only $200 million is being outsourced by India. As more publishers look for the introduction of cost reduction and more technology into the publishing supply chain, India is poised to capture an increasing share. The vendor landscape in India is fragmented with a number of small players offering data conversion services and larger players providing the whole gamut of services including project management, editorial services, design and composition services.

TexTech currently has a headcount of 150, including 25 in the United States and in line with its business plans the company plans to increase the headcount to 350 next fiscal. Its production facilities are housed in a 10,000-square-foot facility in Chennai.