NIIT Tech acquires Spanish firm Proyecta Sistemas

IT company NIIT Technologies today acquired Spainish software services firm Proyecta Sistemas de Informacion SA for for $7 million.

"We will end up paying 70% of the revenue [for acquisition] which is $7 million," Arvind Thakur, CEO, NIIT Technologies, said.

He said the company had revenue of $10 million in last financial year and has EBIDTA [Earnings Before Interest, Taxes, Depreciation and Amortisation] of 10%.

"From today we will start consolidating revenue of Proyecta with NIIT Technologies," Thakur added.

The acquisition enables NIIT Technologies to enhance its European footprint with Proyecta's experience in travel and financial services segments.

"The company sharply focuses in two segments, travel and financial services. Its 68% revenue came from travel vertical. This is going to add to our expertise and at same time give us local presence in Europe," Thakur said.

He said countries in the Europe mainland were very unique in nature and local presence was required for good experience of customers.

NIIT Technologies' Europe, Middle East and Africa (EMEA) operations contribute 35% to its global revenues.

Headquartered in Madrid, Proyecta, with over 100 consultants that industry players in business intelligence, web and mobility applications.

Shares of NIIT Technologies closed today at Rs 196.25, up by 2.53% from previous close on the BSE today.