The Hindu Business Line : Adea set to buy Netkraft for $8 m

ADEA Solutions of Texas, a privately held business process and technology consulting firm, is likely to buy out Netkraft, sources close to the deal said. A news conference scheduled for Thursday is likely to announce the deal, they added.

Mr Anand Sudarshan, CEO, Netkraft, confirmed the buy-out talk, adding that it was an "all-cash deal".

However, he did not disclose further the details that are to be announced tomorrow.

Netkraft was in the market with an aim to raise $5-8 million to fund its working capital requirements and expansion plans. It has raised close to $8 million in several rounds of funding till now.

Venture funds Actis (formerly CDC Capital Partners) and JumpStartup own about 67 per cent in Netkraft, while promoters, employees and management among others hold the rest.

"In this deal, the VCs could exit the company," the sources said. The deal size could be capped at $8 million, they added, citing the recent pricing of buy-out of Kshema Technologies by MphasiS.

Netkraft provides solutions and services for the retail and healthcare sector. The company that slipped into red following the technology slowdown has posted marginal profits on revenues of about $10 million last fiscal following restructuring operations.

The original promoters, Mr Atul Jalan and Mr Prashant Prakash, who quit the company as part of the restructuring exercise, continue to hold their stake of close to 11 per cent in the company. It is likely that the promoters may dilute their holding in the next round of fund infusion.

For the current fiscal, the company is likely to sustain a growth momentum at a rate of 50-60 per cent, which it achieved last year.

Netkraft derives about 50 per cent of its revenues from its retail practice and the rest from healthcare and technology solutions.

Adea, which is in an expansion mode in the US, currently employs close to 1,300 persons and claims to have reported 70 per cent growth in 2003. It has an offshore development centre in Hyderabad.

More Stories on : Mergers & Acquisitions | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Karnataka is No 1 BPO hub'

Fixed line billing way below norms: TRAI

Sierra Atlantic interoperability laboratory

Oracle system upgraded

Akiko Callnet plans BPO training centres in Kerala

Adea set to buy Netkraft for $8 m

`Give us better infrastructure facilities' — Nasscom summit highlights needs of BPO sector

WestBridge, others invest $4 m in Astra Business