Adea set to buy out Netkraft

The US-based $130 million Adea Solutions is to acquire Netkraft, a Bangalore-based software solutions company, which has revenues of $10 million.

A source close to the deal said the details would be announced during this week. This acquisition emphasises an increasingly growing trend of small and medium sized software companies looking at being a part of a bigger canvas to gain scale.

Recently Mphasis acquired Kshema Technologies and TCG Software gained control of Ivega. It is learnt that Adea is buying out Netkraft's majority shareholders, JumpStartup Venture Fund, which holds around 22 per cent, and Actis (formerly CDC Capital Partners), which holds around 45 per cent, to expand its offshoring presence in India.

The size of the deal was not ascertained. Adea has a 30-man development centre in Hyderabad. Actis and JumpStartUp has fuelled Netkraft's growth with a total investment of $9 million.

With the proposed buyout Adea gets a headway in the retail and healthcare sectors and a strong team to bolster its India offshore delivery model.