To strengthen its enterprise offerings in the analytics and business rules management space, Chennai-based California Software (Calsoft) will acquire a 100% equity stake in technology consulting firm International Innovations Inc. The target company’s valuation will be capped at a maximum of $1.32 million (approximately Rs 5.3 crore).
The letter of intent (LoI) to purchase the Mountain View, California-based, company will culminate in a definitive share purchase agreement, the process of which is expected to be completed by December 31 this year. The deal envisages phased payments by Calsoft over a period of one year from the conclusion of the share purchase agreement and will also be based on certain performance parameters, Calsoft said.
The acquisition is expected to add $2.3 million with PAT of $300,000 to Calsoft’s cash kitty over the next 12 months, S Santhosh, managing director and chief executive officer of Calsoft, said. Piyush Govil, founder and chief executive officer of Innovations, said that Calsoft’s strategic equity stake would help Innovations extend its capabilities and global reach and further strengthen the latter’s American business.
After the initiation and expansion of its Oracle application practice, Calsoft has seen significant increase in business in the enterprise applications area in North America, which contributed 66% of the topline during the September quarter this fiscal, followed by Europe and the Asia-Pacific region.
International Innovations delivers information management solutions through business intelligence tools, analytics, business rules management and enterprise search capabilities. The company has experience serving a diverse range of clientele in sectors like mortgage banking and financial services, technology, manufacturing, travel and telecommunications. Cisco Systems, Charles Schwab, Washington Mutual Inc., APL, and Wells Fargo are on the company’s customer A-list.
Calsoft posted consolidated revenues of Rs 169 crore for the year ended March 31, 2007. Calsoft and its subsidiaries presently employ over 1,000 people at development centers in Chennai, Bangalore and Mysore, as well as Pleasanton, (California), Alameda (California), and Boston (Massachussets). Source: business-standard
