Infotech Enterprises is trading higher by 3% at Rs 353 after the company has announced that its wholly owned subsidiary, Infotech Enterprises America, Inc. has signed a definitive agreement to acquire Softential, Inc.
Softential provides IT service management and service assurance for clients in telecommunication and cable operators.
As per management, this acquisition would enable Infotech to broaden its service portfolio for its existing customers in telecom industry segment.
Management indicated that price paid for the acquisition would be around 1.1 times of its 2013 revenue (US$17 million) plus performance-based earn-out component in the first year.
Based on the above information, upfront price paid would be around US$18- 20 million and the company expects to finance it with 50% equity and 50% debt, said analyst at Angel Broking in a note.
The stock opened at Rs 350 and hit a high of Rs 359 on the BSE. A combined around 36,000 shares changed hands on the counter till 0950 hours on the BSE and NSE.
Softential provides IT service management and service assurance for clients in telecommunication and cable operators.
As per management, this acquisition would enable Infotech to broaden its service portfolio for its existing customers in telecom industry segment.
Management indicated that price paid for the acquisition would be around 1.1 times of its 2013 revenue (US$17 million) plus performance-based earn-out component in the first year.
Based on the above information, upfront price paid would be around US$18- 20 million and the company expects to finance it with 50% equity and 50% debt, said analyst at Angel Broking in a note.
The stock opened at Rs 350 and hit a high of Rs 359 on the BSE. A combined around 36,000 shares changed hands on the counter till 0950 hours on the BSE and NSE.
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