Infotech to acquire US-based Softential for over $17m

Tags: Infotech, News
IT firm Infotech Enterprises will acquire US-based Softential for over $ 17 million in cash (Rs 104 crore), aimed at strengthening its telecom and enterprise solutions portfolio.

Infotech's wholly-owned subsidiary Infotech Enterprises America will acquire Virginia (US)-headquartered Softential, which offers service management and service assurance solutions for telecommunications and cable operators, enterprise customers and the public sector.

"We are paying 1.1 times FY'13 revenue as upfront and one year earnout based on financial performance parameters," Infotech Enterprises Chief Financial Officer Ajay Aggarwal told PTI.

He, however, declined to comment on the earnout amount citing disclosure restrictions. The deal is expected to close in the next 2-3 weeks.

"Softential will fit very well in the Infotech family. I strongly believe that the combined entity will be very attractive to both companies' existing customers," Infotech Enterprises Senior Vice President (Strategy) Joseph NJ said.

The acquisition will strengthens Infotech's telecom business unit by adding 140 skilled global resources.

Infotech has 1,300 people in the US, which accounts for about 60 per cent of its revenues.

"The US has been an important market for us for a very long time. Our focus was on the network side. With this acquisition, the operations bit will be strengthened," he added.

This alliance creates a scalable platform for enhancing strategic value and provides an opportunity for cross- pollinating offerings across the combined customer base, Joseph said.

In 2010, Infotech Enterprises had acquired US-based telecom engineering services provider, Wellsco in an all-cash deal.

Though the company had not disclosed the deal size, sources said Infotech had paid about $ 15 million for the company, which had annual revenues of $ 12 million and over 180 employees.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Kerala, god’s own country, will always be free spirited

    Candy is dandy, but liquor is quicker,” the celebrated American poet Ogden Nash had once said famously.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>:The over-the-top effect effect

The overconfidence effect is a bias in which someone’s subjective ...

Parvez Imam

The absoluteness in representations

When a representation replaces the original object or subject, a ...

Dharmendra Khandal

Religion and conservation must go hand in hand

In 1986, former president of WWF International, HRH Prince Philip, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture