Gateway to acquire 5 tech solution firms

Ahmedabad-based Gateway Technolabs is planning to acquire five small and mid-size technology solution provider companies in the coming few months to consolidate its position in the US and European markets.

The plan to opt for inorganic growth comes in the wake of the company's merger with the Netherlands-based NINtec B V to expand its business and services in Europe especially in Belgium, the Netherlands and Luxembourg.

Gateway, a provider of offshore software development services, plans to raise around $35 million through private equity investors in the next four to six months. Of this, 60 per cent will be earmarked for overseas acquisitions, 20 per cent for domestic acquisitions and rest for infrastructure upgrade.

For the acquisitions, the company is looking at three Indian companies in the technology solutions space while the rest would be from abroad.

"We are looking at both organic and inorganic growth. Presently, over 50 per cent of our business comes from Europe and rest is from the US and other parts of the world. Following the merger with

NINtec we will able to expand our geographical reach," said Niraj Gemawat, managing director, Gateway Technolabs.

The merger with NINtec has been created against 15 per cent stake of Gateway Technolabs.

Speaking on the same, Vipin Moharir, director, NINtec said, "Our activities in Business Process Outsourcing and our products division will bring in added advantage in this merger and allow us to leverage our position in the EU."