Fortune was formed in 1998, has 560 employees and operations in Bangalore and has operations in Baroda (where it is based) and Bangalore, and also has an office in Princeton, New Jersey.
A press release stated that the acquired company’s annual revenues were less than 1% of those of Covansys, which would put its sales at less than $3.7m. The company claims that its clients include two of the top five US health insurance providers and two of the top ten US airlines.
Farmington Hills, Michigan-based Covansys is recovering after a turbulent 2004. In March last year, CFO Michael Duffy resigned. Five months later, president and CEO Martin Clague left the company and was replaced by founder and co-chairman Raj Vattikuti.
In the third quarter of 2004, Covansys was forced to take a $28.7m charge relating to the recapitalization of an ownership interest. The company also restated its operating results for 2003 and 2002 following the discovery of financial irregularities.
Since then though, its financial state has stabilized and last month it announced that it had returned to profitability in the first quarter.
