Apollo Arm Dusk Valley Buys 50% In Us Co

Apollo group company Dusk Valley Technologies has acquired 50 per cent stake in US-based $12 million application service provider (ASP) Result International Systems (RIS) in a cash deal.

This move is expected to give Dusk Valley Technologies access to international insurance market and allows it a US presence.

In addition to this, Dusk is also looking at acquiring two more entities in the insurance domain. The company is expected to start the first round of talks with insurance ASPs next week and is expected to finalize the deal by June end.

"We are looking at acquisitions as the right strategy to build out knowledge as build and learning method will take time," Raaja R S Kanwar, chief econet officer, Dusk Valley Technologies, said yesterday. "These first round of acquisitions are to happen in the US," he added.

 

In the second stage the company is also eyeing to buy out two more US ASP companies in the health care and aviation segment. "This is the other two domains we are looking for acquisitions. The first such acquisition will happen in the healthcare segment which will be followed by the Aviation segment," Kanwar said.

He, however did not specify the timeframe for these acquisitions to happen.

The company will decide on a case by case basis about the mode of buy out. "We will decide the method of buying whether it will fully cash or partly stock on a case to case basis," he pointed out.

In addition to this, the company which is fully owned by the Apollo group is also looking at bringing down the promoters stake to bring in strategic investors into the company.

"We are looking at bringing in strategic investors not money," Kanwar said.

However, the company is yet decide about the extend of equity that the company would off load to the strategic investor. The company is expecting to finalize the funding by September this year. "This is the time we need to look for a strategic investor who will help us grow to the next level. This will happen in the coming 3 to 4 months," he pointed out.

Dusk Valley Technologies, set up 1999 is also planing to open more offices in India. The new offices would come in Mumbai, New Delhi and Chennai.