Source: Originally reported by IDG India / cio.in (June 2019). This article summarises the key details of the acquisition announcement.
Hitachi Systems Acquires Full Stake in Micro Clinic
Japanese conglomerate Hitachi Ltd, acting through its wholly-owned subsidiary Hitachi Systems Ltd, has completed the acquisition of 100 percent of Delhi-headquartered IT systems integrator (SI) and services company Micro Clinic. The acquisition makes Micro Clinic — now branded Hitachi Systems Micro Clinic (HiSys MC) — a fully owned entity within the Hitachi group.
The deal was executed in two stages. Hitachi Systems first acquired a 76 percent stake in Micro Clinic in 2014 in a transaction reported to be valued between INR 80 and 100 crore. The remaining 24 percent stake was subsequently acquired, with the final transaction completing in the November–December 2018 timeframe, according to an official statement issued by HiSys MC. The value of the second tranche was not disclosed publicly, with the company noting that the valuation was agreed upon privately and that shareholders were satisfied with the outcome.
Business Continuity: What Changes and What Doesn’t
Despite the change in ownership structure, Hitachi Systems Micro Clinic has indicated that day-to-day operations will continue largely unchanged. The company will retain its existing brand name and go-to-market (GTM) strategy. Key leadership also remains in place: Tarun Seth, the founder of Micro Clinic and the face of the brand in India, continues in his role as Managing Director and is expected to remain in that position through 2023.
“The perception in the market might change for a 100 percent Hitachi Company, but internally, it is Business As Usual,” the company stated.
Growth Trajectory: A Decade of Scale
Micro Clinic’s journey under partial and then full Hitachi ownership has been marked by rapid revenue growth. According to HiSys MC, the company clocked revenues of INR 603 crore, INR 902 crore, and INR 1,408 crore (unaudited) across its three most recent fiscal years at the time of the announcement — a trajectory that management described as 10x growth over five years. The company set a target of INR 2,100 crore for fiscal year 2019–2020.
Tarun Seth attributed the sale of the remaining stake to a pre-agreed contractual arrangement: “Selling the remaining stake was part of the agreement we entered into in 2014. We have grown 10X in five years and also tagged as the fastest growing entity in Hitachi Ltd. for the last five years.”
International Expansion: Middle East and Beyond
HiSys MC has been expanding its SI and IT services operations beyond India. The company launched direct operations in the UAE in May 2018 and established partnership-based presence in Oman and Qatar. The Middle East business is headed by CEO Rajan Bhandari, with General Manager Subramania Kumar managing on-ground operations.
The company’s stated strategic focus for the region is horizontal, with vertical depth in BFSI (Banking, Financial Services and Insurance), government, and cybersecurity. Seth framed cybersecurity as a particularly strong opportunity: “Cybersecurity is a worldwide opportunity and we are sanguine that our expertise and experience will be very well received there.”
The company also indicated plans to commence operations in Singapore as the next step in its APAC expansion.
Strategic Vision: Becoming India’s Number One SI Company
Seth outlined an ambitious long-term goal for the fully integrated entity: positioning Hitachi Systems Micro Clinic as the leading systems integrator in India, with an emphasis on social innovation and digital transformation. “I would like to make Hitachi Systems Micro Clinic the number one SI company in India that positively impacts the lives of citizens through our social innovation and digital transformation initiatives,” he told IDG India.
Micro Clinic was originally founded by Seth in Delhi more than 25 years before the acquisition was completed — making the Hitachi buyout a significant milestone in its corporate history.
Key Facts at a Glance
- Acquirer: Hitachi Systems Ltd (wholly-owned subsidiary of Hitachi Ltd, Japan)
- Acquired entity: Micro Clinic India Pvt. Ltd., Delhi
- Initial stake (2014): 76%, reported deal value INR 80–100 crore
- Final stake acquired: Remaining 24%, completed November–December 2018
- Post-acquisition brand: Hitachi Systems Micro Clinic (HiSys MC)
- MD post-acquisition: Tarun Seth (expected tenure through 2023)
- Revenue (last 3 reported FYs): INR 603 cr → INR 902 cr → INR 1,408 cr (unaudited)
- FY2019-20 revenue target: INR 2,100 crore
- International operations: UAE (direct), Oman and Qatar (partnerships); Singapore planned