The Hindu Business Line : Mold Tek to buy US engineering firm

Mold Tek Technologies Ltd has approved a move to acquire a US-based structural engineering KPO (knowledge process outsourcing) company along with its associate company in India.

The board of directors has authorised the company’s Chairman and Managing Director, Mr J. Lakshmana Rao, to pursue due diligence and valuation process. While the company expects to fund this acquisition through internal accruals, it is in negotiations with private equity firms to raise additional funds. This is a follow-up of a demerger process the company undertook recently.

Mr Rao told Business Line that the details of the transaction would be announced later during the month when the company promoters are set to visit India. This will add additional revenues of about $2.5 million to the company.

Pvt equity players

The company is in talks with private equity players and has mandated ICICI. The PE deal is likely in couple of months.

The company has earlier hinted at acquisition and this move is part of its drive to expand into new services. The US-based company specialises in providing structural engineering services to high rise buildings and has about 90 engineers working in India and the US.

With this, the Mold Tek’s KPO division is expected to add 20 more clients and the company now commands over 350 engineers.

During the fiscal, the company had acquired a 100 per cent subsidiary of Crossroads Detailing Inc, an Indiana-based US structural engineering company.

The diversification into value added engineering services has helped the company insulate itself from rupee appreciation and going forward the new acquisition too, is expected to add value, Mr Rao said.

More Stories on : Mergers & Acquisitions | Overseas Investments | Software

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