The Hindu Business Line : Ontrack to acquire US-based Intellisys Group

Ontrack Systems Limited would be acquiring US-based Intellisys Group for approximately $ 6.94 million in cash and shares. The acquisition would be completed by end-September.

At a press briefing on Wednesday,Mr Ramdevan Krishnaswamy, Founder Member, Intellisys Group, said that the association would enable Intellisys to collaborate with Ontrack to offer BPO and software solutions to clients in newer markets like Middle East.

Ontrack would allot about 7.15 million shares at Rs. 4.21 per share, as consideration for the first phase of transaction, subject to approvals.

It has plans to raise funds to finance the transaction and for expansion plans, through follow-on public offering in India or through FCCB (Foreign Currency Convertible Bond) / GDR (Global Depository Receipts) issue in overseas markets, Mr. S.V. Ramani, Whole-time Director, Ontrack Systems, said.

IDBI Capital Market Services was the merchant banker and Ernst & Young, advisors, for the transaction.

Ontrack, with 2005-2006 revenue of Rs 30.14 crore, has plans to acquire other smaller companies as part of its business strategy, a senior official said. "We are looking at robust, strong and market-driven vertical specialisation across three to four verticals. We have identified retail and transport as two of them," Mr. B. Hari, CEO, Ontrack Systems, said.

The company has targeted a revenue of Rs. 100 crore for 2006-2007.

Intellisys Group's total revenue by end-2005 was $ 6.5 million.

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