Omnitech close to sealing European buy for $15 mn

Leading IT company in the SME segment, Omnitech Infosolutions, is eyeing a five-fold growth in topline at Rs 1,000 crore by 2013 fiscal and is close to sealing an acquisition in Holland by next month, a top company official said.

The BSE-listed mid-cap firm had posted a revenue of Rs 216 crore in FY10 and expects a 30 per cent growth this fiscal.

"We are all set to close an acquisition deal worth $15 million with a Holland-based IT firm in the next 30 days. The company (to be acquired) provides infrastructure and management services. With this buy-out, we expect a 100 per cent growth going ahead. We are expecting our topline to touch the Rs 1,000-crore mark by FY13," Omnitech's Managing Director Atul Hemani told PTI here today.

The company has also lined-up a series of acquisitions in Europe, the US and UK over the next two years and has shortlisted four firms in these geographies, of which one is in Boston.

"We are very aggressive on acquisitions and plan four buy-outs. Of these, Holland will be closed next month. In the next six months, we will be closing another deal with a Boston-based company in application service. The buy-outs will help us penetrate more geographies and help us grow the topline as well as the bottom line as all the firms are EPS-accretive," Hemani said.

The company is also contemplating a domestic buy-out, he said, without divulging further details. For this, the company is hunting for an official to head its Mergers and Acquisitions (M&As) department and will announce the same in the next 15 days.

"We are looking for a good resource to head our M&A division and also for the finance department. We will be announcing these in the next 15 days," Hemani said.

Asked on how the company plans to fund its inorganic growth, Hemani said it has tied-up for a term-loan and is also mulling a QIP or PE fund raising in the next two months.

"We are looking at raising funds through a QIP or might get some PE partners. This would take another two months," Hemani said.

The company with offices in Singapore, Hong Kong, the Netherlands and US, plans to hire 1,200 personnel this fiscal. Its current headcount is 1,000 globally.