Calsoft to buy WebSpectrum for Rs 2.25 cr

Chennai-based software products and services company California Software Company Ltd (Calsoft) has signed a memorandum of understanding to acquire WebSpectrum Software Private (WebSpectrum) for around Rs 2.25 crore.

Calsoft is acquiring 100 per cent stake of WebSpectrum in a deal which involves an immediate cash payout of 25 per cent with the rest payable against performance in the next three years.

"This acquisition helps us to strengthen our technology solutions division as we will merge our division with WebSpectrum and also increase the Bangalore facility to 100 engineers by end-2005. As a small player we need to get into niche areas and grow inorganically in size," said J K Nair, executive vice-president and chief operating officer, Calsoft. WebSpectrum is expecting to close this fiscal with a turnover of Rs 3 crore.

With the acquisition, Calsoft adds on 35 employees, four key clients which include HP India and Symmetricon and extends its presence to Bangalore.

"We will increase the business from Nortel Networks, a common customer for both the companies. Going forward we will look at more acquisitions in India and abroad," Nair said.

The company has helped develop more than 80 products for software companies since 1995. Besides the technology solutions division, Calsoft has specific product offerings for the commodities market and also provides enterprise solutions.

It has four development centres in Chennai, one in Pleasanton, US, and marketing offices in the US, UK, Japan, Singapore and Dubai.

Calsoft has a headcount of 400 spread across all these locations.