Infotech sets aside Rs.3 bn for acquisitions (Lead)September 22nd, 2008 - 9:44 pm ICT by IANS
Noida, Sep 22 (IANS) Infotech Enterprises Ltd, an information technology-consulting firm, has earmarked Rs.3 billion for new acquisitions in the current year, a top company official said here Monday.The company raised Rs.3 billion in July last year through equity dilution, with global growth equity firm General Atlantic picking up a 13 percent stake and the Mauritius-based Carrier International acquiring two percent.
“We will close two major deals this year, one is the acquisition of Time to Market, based in Santa Clara, California. The deal will be closed by September 30,” said Infotech chairman and managing director B.V.R. Mohan Reddy.
The US company is a leading provider of embedded software to clients in the networking, communications, consumer electronics and semiconductor industries.
“The second acquisition is of an auto engineering company in Europe which will be closed by the end of this year,” Reddy added.
However, Reddy refused to divulge any further details.
The company Monday inaugurated its 600-seater facility in Noida, which will be engaged in Software development, IT-enabled services and mapping geographical bases business.
The four level facility is built over 45,000 square feet on an investment of Rs.200 million (Rs.20 crore).
“This will be Infotech’s fourth facility in India, besides two in Hyderabad and one in Bangalore,” Reddy said.
The company has also expanded its base in tier-II cities like Kakinada where it has employed 260 people and plans to raise it to 450.
The Hyderabad-based company has been growing by 40 percent year-on-year, Reddy said, adding that there has been no acquisitions since 2005.
Infotech recorded revenues of Rs.2 billion with a profit of Rs.245 million for the first quarter ended June 30.
“We expect to close this financial year with revenues of about Rs.9 billion without factoring any acquisitions,” Reddy said.
Tags: auto engineering, growth equity, information technology consulting, infotech enterprises ltd, kakinada, networking communications, santa clara california, semiconductor industries, technology consulting firm, year one