Datamatics buys 72% stake in Cignex

IT company Datamatics today announced to acquire around 72% stake in California-based IT firm Cignex for $17.39 million cash deal from its internal funding.

"We have been working with Cignex in a joint venture and response of customers had been very good. This acquisition gives us access to three new markets, California, Singapore and some part of middle east," Rahul Kanodia, Vice-Chairman & CEO, Datamatics Global Services, said.

Cignex provides content and document management IT solutions based on open source software for businesses.

Kanodia said the aquisition is strategic expansion of Datamatics business as the company has business segment providing similar solutions.

"Acquisition of Cignex adds open source domain expertise to our business," Kanodia said.

He said Cignex is looking at revenue of $20-22 million in the ongoing financial year and $30 million in 2012-13.

Datamatics operates in to content and document management, embedded technology, finance and accounting segment.

The company during the quarter acquired embedded solutuion maker Vista for Rs 17 crore in all cash deal.

"Vista has leadership position in aeronautical and automotive segment. We have paid one tranche for acquisition and next will be paid before end of this financial year," he said.

Kanodia said the company is looking for acquisition for expanding financial and accounting services business.

"Datamatics is looking for acquiring company that gives us financial and accounting solutions market in US, UK and India," he said.

Datamatics today reported increase in consolidated net profit of 38.4% growth at Rs 6.70 crore for the first quarter ended on June 30 as compared to Rs 4.84 crore during same quarter in 2010-11.

The total revenues of Datamatics in Q1, 2011-12 was also up by 54.5% to Rs 101.68 crore, compared to Rs 65.81 crore posted in Q1, 2010-11.