Rolta buys US-based TUSC for Rs 180cr

Mumbai-based IT firm Rolta has acquired Chicago-based software services firm TUSC for $45 million (about Rs 180 crore).

The firm specialises in enterprise resource planning (ERP) applications as well as database and business intelligence solutions based on Oracle technologies.

The company expects the acquisition to add to its earnings in the current financial year ending in June 2008, Rolta India informed the Bombay Stock Exchange.

Established in 1988, TUSC has served over 2,000 customers in diverse sectors like utilities, energy, engineering, manufacturing, finance, insurance and retail among others. Over 50 per cent of TUSC revenues are generated from repeat business.

Its revenues in 2007 were in excess of $48 million, with a CAGR of more than 30 per cent over the past four years.

The acquisition is a part of the growth strategy which aims to provide a synergy of technology and intellectual property rights (IPR), enabling the company to move up the value chain for addressing complementary markets, Rolta said.

"With this acquisition, we will be able to provide end-to-end solutions to our clients and also take care of their back-end operations. This also allows us to move up the value chain in our segment," said Hiranya Ashar, director (finance) and CFO, Rolta India.

K K Singh, chairman and CEO of the Rolta group, said, "We will now be able to provide enterprise level solutions to our customers worldwide, thereby increasing the value for our stakeholders."

Shares of the company gained 12 per cent on the Bombay Stock Exchange, to close the day at Rs 540.95.