Calsoft acquires Inatech to strengthen its Oracle Practice
Chennai based California Software company limited (Calsoft) has aquried a minority shrareholding of 49 percent in Inatech Infosolution (Inatech), an Oracle solutions provider in the enterprises space. Calsoft is expected to increase its revenue of $ 36 million in the enterprise solutions sector this ficsal, as compared to the earlier revenue of $ 25 million
The consideration for the deal is $ 6.17 million will be paid through a combination of 48 percent cash and new offer of shares for 52 percent, within a year. Calsoft had bought out a majority interest of 51 per cent in Inatech in november last year.
S Santhosh, Mananing Director & CEO of Calsoft told that under the agreement, California Software was to acquire the remaining 49 percent in november 2009. He also adds that Inatech’s good performance, their management and the European presence had encouragement Calsoft to accelerate the buyout. With the aquisition, Inatech has become a 100 per cent subsidiary of calsoft.
Inatech posted consolidated revenue of Rs 30.54 crore and PAT of Rs 3.6 crore till September, 2007. The amalgamation of the two organisations is expected to take within three months. Calsoft is expected to earn a revenue of $36 million in the enterprise solutions sector this fiscal, as compared to the earlier revenue of $25 million.
On the impact of rupee appreciation, Santhosh pointed out that the company was diversifying its operations from the united states of America (USA) to europe. while 83 per cent of the revenue came from the USA earlier, this turned into 66 per cent from the USA & 27 per cent from europe in the first half of the current fiscal.
Vedante Srihari, CEO & Founder of Inatech, added that the company would hedge the rupee appreciation risk by demanding a better price for newer-renewed contracts while accepting payment in dollars. A hedge is a way of decreasing some of the risk involved in holding an investment or reducing losses caused by price fluctuation.
