Four Soft buys Dutch firm

City-based Four Soft Limited, a software solutions provider in the transportation, logistics and supply-chain management vertical, has acquired Netherlands-based transportation and freight forwarding software solution company CargoMate International BV.

Addressing a press conference, Four Soft managing director Palem Srikanth said, "The acquisition cost of CargoMate was around $1.9 million and the stockholders of CargoMate will receive 87.5 per cent in cash and 12.5 per cent in the form of common stock of Four Soft."

Srikanth said that the transfer of shares has been completed and the subsidiary will be renamed Four Soft BV. "The acquisition will enable Four Soft's entry into the small and medium logistics and supply-chain management service providers market in Europe and other countries," he said.

CargoMate has 50 customers in the cargo transportation industry with a strong presence in the Netherlands and other European countries. The company's software comprises of solutions for transportation, freight forwarding and customs compliance.

Srikanth said that the company was open to further acquisitions and has appointed two consultants, ROI Insurance and Albion group in the US to look for companies for mergers or acquisitions.

"The company has around Rs 35 crore for future mergers and acquisitions. Through the initial public offering (IPO) we had raised Rs 20 crore in March, around Rs 8 crore was raised through UTI and the rest is from internal means," he said, adding that the acquisition would help in cross-selling opportunities for both companies.

Ge Pijnappel, managing director of CargoMate International BV, said, "The merger is a significant step forward in our growth plan and will enable us to serve our clients with a much broader scope of services and offering."