The Hindu Business Line : Infotech buys Tele Atlas' Indian operations

Mr B.V.R. Mohan Reddy, Chairman and Managing Director, Infotech Enterprises, and Mr Bruce Radloff, Chief Technical Officer, Tele Atlas, at a press conference in Hyderabad on Thursday. - - A. Roy Chowdhury

Hyderabad , March 24

INFOTECH Enterprises Ltd, has announced the acquisition of Tele Atlas India, in a cash deal estimated at Rs 8.29 crore (about 1.43 million Euros), from Tele Atlas, a Frankfurt Stock Exchange listed, the Netherlands-based, digital map services provider.

The acquisition brings Infotech about 600 people in resources and access to new markets. In a related development, Infotech, subject to shareholders' nod, would allot about 3 per cent of equity to Tele Atlas, towards long-term business association. Consequently, the Tele Atlas President, Mr George Fink, will join the Infotech board.

Addressing a press conference here on Thursday, the Chairman and Managing Director of Infotech Enterprises, Mr B.V.R. Mohan Reddy, along with the Chief Technology Officer of Tele Atlas, Mr Bruce Radloff, said their long-term association would generate about Rs 90-crore business through 2.5 million hours of work.

"The 3 per cent of Infotech equity offer to Tele Atlas would be through a preferential offer route. A meeting of the shareholders has been convened for April 21. These equity shares would be offered at 10 per cent premium , with the deal expected to be valued at about Rs 10 crore," Mr Reddy said.

Mr Radloff said, "We see this divestment as strategic, given the long term deal we are entering into with Infotech.

"Following this acquisition, Infotech headcount will go past the 3,000-mark. We had announced that the company would add about 1,000 people across locations this year. Given this, we would have to rationalise some of them and rework our strategy as a part of the overall company goals," Mr Reddy said.

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