Quintegra likely to buy Us firm for $50 million
Quintegra Solutions, an It services and solutions company is looking to acquire a US-based software company in the BFSI segment for about $50 million, as a part of its presence in the market.
The Chennai-based company is raising resources to fund the takeover, according to sources close to the development. It would pay $20 million upfront in cash, for the US based company which reported revenues of $62 million in 2006.
It is said to have tied up initial round of funds with SBI for the takeover. If it goes through, Quintegra’s revenue this year is expected to be above $100 million as against the earlier projection of $40 million.
A Quintegra spokesperson declined to comment on the development. But, it is learnt that the due diligence is now going on and the acquisition is likely to be through by second week of September, sources said.
Quintegra Solutions, which is listed in BSE and NSE, reported revenues of $18 million in the year ended 31 March, 2007. It expected the topline to grow to $40 million on the back of two acquisitions it made earlier this year. State Bank of India helped in funding the acquisitions then by lending $5 million.
Quintegra Solutions has offshore development centres in Chennai and Bangalore, acquired valleyUS of the Us in March for $9.5 million and jadelite technologies of Singapore for $1 million. Quintegra chairman and managing director Shankarraman Vaidyanathan told that acquisitions were a part of its plan to reach its target of $100 million by 2010.
