Infotech to acquire US-based Softential for over $17m
Mar 07 2014 , New Delhi
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.