Infotech Enterprises to acquire two US firms

Infotech Enterprises, a city-based IT services company, is set to acquire at least two US firms, company's Chairman and Managing Director B V Mohan Reddy said here today.

The discussions are at the final stage and we will be closing the deal by fiscal end, Reddy said hinting that the size of the companies to be acquired would be up to $20 million.

The company has a cash reserve of Rs 400 crore and this allows them to go for strategic acquisitions, he said.

To a query on revenue projection for 2009-10, he said they expect a growth of 12.5 per cent this year, which would make the company cross Rs 1,000-crore turnover mark. Last year revenues stood at Rs 890 crore.

The company has plans to add 500 more employees to the existing strength of 7,500. Reddy said the hedging strategy of the company would not change for the next six months. Infotech shares opened at Rs 285 and closed at Rs 301.10 on the Bombay Stock Exchange today.