The Hindu Business Line : Core Projects buys US co

Mumbai March 31 The Mumbai-based IT solutions firm Core Projects and Technologies has acquired 100 per cent stake in the US based Emacs Technologies Inc for an all-cash consideration of $3 million (Rs 13.5 crore).

Emacs Technologies is a global management consulting, technology services and outsourcing company. It has competencies in verticals such as healthcare, banking, financial services and insurance and logistics.

This acquisition will enable Core Projects to garner access to Emacs' clientele, which boasts of players such as Accenture, Ernst & Young, Northrop Grumman, and Rohm & Haas.

"The acquisition is in tune with our competencies and will enable us to mine Emacs' existing clients as we intend to do a lot of cross-selling in those specific verticals," Mr Nikhil Morsawala, Director, Core Projects, told Business Line.

Emacs currently employs 80 people and has an offshore development centre in Hyderabad. The acquisition would also ensure Core a strategic bandwidth with a team of consultants who can be deployed on a per project basis, said Mr Morsawala. Emacs operates on a margin of 17-18 per cent and has a current revenue run rate of $7 million (Rs 31.5 crore).

"Since the acquisition is in synergistic domains, it will immediately add about $1.3-1.4 million (around Rs 6.3 crore) to our bottomline," he said.

Post the acquisition; the entire management team of Emacs will join Core Projects. "We might go in for three-year agreement with the promoters of the Emacs with a non-compete clause," said Mr Morsawala.

The acquisition will be funded through funds raised by Core's FCCB issue of $12.25 million (Rs 55.12 crore), raised last December. The acquisition will be integrated with the company roughly within the next six months, added Mr Morsawala.

The company is also on the look out for synergistic acquisitions in its other domain focus areas, and might freeze one in this direction by May this year, Mr Morsawala said without giving further details.

More Stories on : Mergers & Acquisitions | Overseas Investments

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