Calsoft today announced the signing of a Memorandum of Understanding (MOU) for acquisition of the minority shareholding of 49% in Inatech Infosolutions, India (Inatech). The consideration for the acquisition of this part is valued at approximately USD 6.17 Million and will be paid through a combination of cash & stocks, subject to due regulatory approvals as applicable.
Earlier in Nov 2006, Calsoft had taken 51% majority interest in Inatech, a specialized end-to-end Oracle solutions provider in the enterprise space. As part of the agreement, Calsoft was to originally acquire the balance in November 2009.
Mr. S. (Sam) Santhosh, Managing Director & CEO, Calsoft, said, “Inatech’s good performance, their management team and European presence have encouraged us to accelerate the buy out. We expect this transaction to be accretive to Calsoft’s earnings. Given the size of our organization and the complementary nature of our businesses, we should recognize substantial revenue synergies and significant economies of scale.”
Inatech has posted consolidated revenues of Rs30.54 crores (US$ 7.5million) and with profits after tax of Rs 3.6 crores (US$0.9 million) for the half-year ended 30 September 2007.
Mr. Vedante Srihari, CEO & Founder of Inatech added, “There is an increasing demand for high quality Systems Integrators who can deliver globally. Now is the time for Inatech to join Calsoft and leverage synergies.”
Moving forward, Mr. Vedante Srihari would head Calsoft’s Enterprise Solutions strategic business unit.