Cranes buys two firms for Rs 70 crore

Cranes Software International, a Rs 300-crore provider of scientific and engineering software products and solutions, has acquired two companies for a total of Rs 70 crore.

The Bangalore-based company, which usually adopts an acquire-enhance-expand model, has bought the US-based Dunn Solutions Group (DSG) and Pune-based Tilak AutoTech (TAT) to develop products in enterprise analytics and automotive embedded products.

DSG, which employs about 60 people, is a technology firm specialising in business intelligence knowledge solutions with capabilities in providing client training on products and quality management.

The company has a client base in BFSI, healthcare and pharmaceuticals sectors. Bank of America, American Express, Banco Popular, Abbott Labs, Caremark and Pfizer are some of its key clients.

Cranes acquired the equity shares of DSG with an investment of about Rs 60 crore through Cranes Software, its subsidiary in the US.

Asif Khader, managing director of Cranes Software International, said, "We believe that these acquisitions will help us create an end-to-end analytics solutions for our clients. Today, it is imperative for product and solution providers like us to offer a full-fledged solutions base, such that we can command a premium over our peers. Dunn Solutions will help us gain significant client penetration in BFSI, healthcare, education and government sectors."

Cranes has acquired TAT, entailing an investment of about Rs 10 crore. TAT will remain as a wholly owned subsidiary of Cranes Software.

TAT, which focuses on R&D and design of software and hardware products and solutions in automotive electronics, has clients such as Tata Motors, Bajaj Auto, Mahindra & Mahindra, Toyota, Hyundai, GM, Ford and Daimler. TAT has a headcount of about 15 people.

"Our purchase of TAT significantly advances our presence in the area of embedded software and controls solutions. TAT will help us leverage our value-added consulting expertise to include embedded systems designs," Khader added.

Cranes has a headcount of about 650 people. In 2005-06, the company had reported a revenue of Rs 214 crore and a net profit of Rs 62.48 crore.