InfrasoftTech to buy US firm soon

Riding on increasing global demand for its anti-money laundering software, banking software solutions provider InfrasoftTech is planning to expand its American operations by acquiring a US-based company for $7 million, in two months.

"We have shortlisted three prospective companies for this deal for which talks are on. We hope to acquire one of them within the next 60 days," said Hanuman Tripathi, MD, InfrasoftTech.

The company is looking at this acquisition to strengthen its position in the US market, Tripathi said, adding it will add around 70 staff besides about seven banks to its client base.

The Mumbai-based company has presence in Europe, Middle East as well as East Asia. The company currently earns around 60 per cent of its revenues from UK operations and aims to earn around 25 per cent revenues from the US in two years.

It also plans to increase its turnover from the present level of $16 million to $32 million in 2007 and $50 million by 2008, once its US operations begin in full swing.

InfrasoftTech expects to leverage on its anti-money laundering software to realise its turnover target. The software helps banks search and scan through customers' profile and transactions across their enterprise and reports suspicious activities effectively.

Money laundering is estimated to be worth a few trillion dollars per year worldwide, and is ranked the third largest business. In India, the RBI has asked banks to Install anti-money laundering software by June, 2006.

The company is also coming up with a new development centre in Mumbai with an investment of $4 million. The centre will be spread over an area of 40,000 square feet and used to strengthen the company's research and development activities, Tripathi said.

Asked whether infrasoftTech plans to enter capital market, he said the company does have such plans but declined to disclose any time frame.