Overseas acquisition perks up Infotech

DALAL STREET SPIKES

Infotech Enterprises gained after the company announced an overseas acquisition on Thursday. The stock was up 7.05 per cent to close at Rs 258.50, with volumes accounting for more than 1.51 lakh shares on the BSE.

The company announced that it will acquire Tele Atlas India, a wholly owned subsidiary of Tele Atlas, Hetrogenbosch, Netherlands. The company has also announced that it has entered into a long-term services agreement for providing database and software solutions to Tele Atlas.

The acquisition will be an all-cash transaction in which Tele Atlas will receive cash of Rs 8.29 crore. To further strengthen the relationship, the company agreed to offer its equity shares to Tele Atlas as a strategic investor, the company said. The stock has witnessed a sharp rally of late.

From a low of Rs 161.45 on January 12, 2005, the stock jumped up 60 per cent to Thursday's close of Rs 258.50.