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Our Bureau

Chennai March 21 Quintegra Solutions Ltd (formerly Soffia Software Ltd) has acquired two software companies — one in the US and another in Singapore — for a total consideration of $10.5 million (Rs 46.50 crore), according to its Chairman and Managing Director, Mr Shankarraman Vaidyanathan.

It acquired 100 per cent stock in the US-based ValleyUS for $9.5 million and the Singapore-based JadeLite for $1 million.

The acquisitions would help Quintegra reach consolidated revenues of around $40 million in fiscal ending March 2008 from the projected standalone revenue of around $16 million by the end of current fiscal, he told newspersons.

ValleyUS, a software development company, reported revenue of $12 million for the calendar year 2006 and is projected to reach $18 million in 2007, he said.

The acquisitions would also help Quintegra grow to around 600 employees next year from the present 400. ValleyUS has around 160 employees and JadeLite has 10, he said. Quintegra got a debt of $5 million from the State Bank of India, he said.

The Chennai-based software services company paid $5 million in cash to ValleyUS, and it would pay the balance in the next three years based on the company's performance, he said.

It may be recalled that about a year ago, Mr Vaidyanathan acquired 84.42 lakh shares (31.50 per cent of the paid-up capital of the company) from Quintegra's earlier promoters — Mr Babu Thiagarajan and Mr Venkat Krishnaswamy — for around Rs 20 crore.

He currently holds around 40 per cent stake in the company, and the balance is held by the public and various institutions, said Mr Vaidyanathan.

Quintegra provides software solutions on Microsoft, SAP and Oracle to clients like Vallent and JP Morgan.

ValleyUS has developed a product to manage the life cycle of a consulting company. It also undertakes IT projects in the areas of client/server, enterprise resource planning (ERP) and e-commerce for its clients such as WalMart and CTB Mcgraw Hill.

Similarly, JadeLite also specialises in ERP and performance, appraisal and training management products and solutions for large companies. Its clients include LaSalle, SIA College of Singapore and Epson, he said.

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