California Software Company Ltd (Calsoft) has announced acquisition of 51 per cent stake in UK-based Inatech Solutions Ltd, having offshore operations in Bangalore. | |
| Inatech's enterprise valuation was at Rs 30 crore. Calsoft will be funding the purchase of 51 per cent stake of Inatech shares through shares worth Rs 5 crore and a cash of about Rs 10 crore through three installments in three years. Calsoft signed the letter of intent today. |
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| Addressing a press conference, Sam Santhosh, managing director and chief executive officer, Calsoft, said the Inatech acquisition would strengthen Calsoft's enterprise offerings as Inatech brought Oracle ERP experience in the enterprise space, especially in the UK market. |
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| He added that the acquisition would also provide vehicle for Calsoft to grow its business in the UK. |
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| Inatech has been providing Oracle solutions with major focus on construction, hi-tech, manufacturing, distribution and the government sector. The company is one of the Certified Advantage Partners of Oracle Corporation. It has about 22 customers in the UK and employs 22 people there and about 70 professionals at its offshore facility in Bangalore. |
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| It posted a consolidated revenue of $7.05 million (Rs 32.30 crore) and a net profit of $0.86 million (Rs 4 crore) for the year ended April 2006. This year, it targets a revenue of $10 million (Rs 46 crore) and profit after tax of $ 1.1 million (Rs 5.06 crore). |
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| Inatech was looking to enhance its capabilities and global reach through right partners. Vedanta Srihari, managing director and co-founder, Inatech Solutions, said Calsoft would help Inatech grow its business in the US besides providing more offerings to its existing customers. |
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| The entire acquisition process is expected to be completed by October 31 and Inatech Solutions will become a subsidiary of Calsoft. Inatech is Calsoft's sixth acquisition in the last 2-3 years. |
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| Calsoft expects to touch a consolidated revenue of $ 42 million (including Inatech's revenue) by the end of this fiscal. Last year, its consolidated revenue was $26 million. |
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