Teledata to take over US software firm

Chennai-based Teledata Informatics Limited (TIL), the software product provider focussed mainly on marine management, learning and education management systems, has chalked out plans to acquire a US-based software product company for around $10 million.

"The negotiations are in an advanced stage and we should have firmed up the whole deal by February, 2005," said K Padmanabhan, managing director, TIL.

"We shall not go in for public funding to finance the deal but will instead do so through internal accruals as we have sufficient cash reserves," he added.

The company hopes that the acquisition will help TIL to establish itself in the utilities space by gaining clients in the lucrative US market and give it access to its proprietary software products.

"The company we have zeroed has established itself over the years and has gained credibility with its work-floor management software tool. It has revenues of $50 million and seven marketing offices around the US. We shall integrate our asset management utility tool with their offering and market it to both existing and new customers," added Padmanabhan.

TIL had recently released its beta version of the asset management utility tool and has big plans for earnings from the utilities vertical.

"As of now we have no presence in the utilities vertical and have negligible revenues, however, by 2006 we aim to earn Rs 40 crore from this vertical alone," remarked Padmanabhan.

The company will also use the marketing offices of the company that it plans on acquiring to sell its own suite of marine, educational and utilities software products.

TIL has recently started its BPO operations for back-end processing and offers its as extension of services for its clients in the marine and educational space.

"Our BPO operations is an effort to service our clients better by offering them enhanced services. Currently we have a staff strength of around 80 people in our Chennai facility," observed Padmanabhan.

It has also tied up with the Singapore Maritime Academy to develop a marine education product that it plans on marketing it by February, 2005.

TIL offers software products in marine management, learning and school management system and has offices in seven countries. It recorded revenues of Rs 60 crore last fiscal and is targeting revenues of Rs 300 crore for 2004-05.