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With this acquisition, the IT sector within the Aditya Birla Group was positioned to become a more focused business under a single umbrella.

BANGALORE Jan. 31

PSI Data Systems, the IT subsidiary of Indian Rayon, plans to acquire group entity Birla Technologies Ltd, a Grasim subsidiary. The board of directors of PSI Data on Thursday decided to acquire 99.91 per cent stake in BTL for a consideration of Rs 11.26 crore.

BTL, which specialises in enterprise integration and mobile applications, has annual revenues in excess of Rs 30 crore and has some 250 employees in the US, Europe and India.

With this acquisition, the IT sector within the Aditya Birla Group was positioned to become a more focused business under a single umbrella, the company informed the Bombay Stock Exchange.

Mr Mukesh Patel, CEO and Business Head of the A.V. Birla Group's Software and IT Services said, ``Distinctive advantages stem from the expanded footprint that the combined entities of PSI and BTL offer. Besides synergies in product offering and services to end-users, we will be geared to win and execute larger business deals, given our collective strengths and expertise''.

Mr Patel added, ``Cost savings across several support functions as we exercise our growth plans in the near future will be significant as well. The two companies' areas of specialisation which necessarily underpin their future growth plans are based on their core competence in vertical segments such as banking & financial services amongst others and domains such as applications mobility, security and integration. The integration of the two companies will be planned and executed considering market reach and organisational efficiencies.''

Meanwhile, PSI Data posted a net loss of Rs 4.219 crore for the quarter ended December 31, as compared to a net profit of Rs 5.684 crore in the quarter ended December 31. Total income for the quarter ended December 31, is at Rs 17.623 crore as compared to Rs 24.782 crore in the quarter ended December 31.

The net loss for the current quarter was been arrived at after considering non-recurring extraordinary item of Rs 98 lakh which includes a write-down of investment made in Accelerex Ltd, UK. Analysts said even as the merger was in line with market expectation, PSI stock is likely to see an upside of about 10 per cent in the near-term.

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