The Hindu Business Line : Aztec in talks to buy 2 or 3 cos

AZTEC Software is hiring, expanding services to existing clients and readying itself for the increasingly popular software subscription model. Speaking to Business Line, Mr V. Chandrashekar, MD and CEO, said the company was in talks to acquire two to three companies in the quality assurance, mobile and networking space.

With cash and equivalents of $17 million, stock and future cash flows generated, Aztec expects investor support for two to three acquisitions of up to $40 million to happen during the year.

"Over the next couple of years, we will use these acquisitions to widen our service offering (from its bread-and-butter engineering services) to existing clients and enable our move to a software subscription model with them," Mr Chandrashekar said.

Aztec Software posted a significant jump in quarterly profits of Rs 2.81 crore for the quarter ended June 2004, compared to Rs 27 lakh in the corresponding previous period. "The acquisitions will enable us to effectively address the ISV segment, and on top of current and expected large customer addition, it should enable a jump in income prospects", he said.

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