The Hindu Business Line : Calsoft to buy majority stake in Inatech

California Software Co Ltd (Calsoft) on Thursday announced the signing of a letter of intent to acquire majority stake in Inatech Solutions UK and Inatech InfoSolutions India.

Mr S. Santhosh, Managing Director and Chief Executive Officer, Calsoft, said that company would acquire 51 per cent stake in Inatech, valued at Rs 15.3 crore, through a combination of cash and stock — Rs 5 crore of this sum would be purchased through CalSoft stock — 5,55,055 shares at Rs 90 each, and the rest through cash payable over three years.

Calsoft posted consolidated revenues of $26.18 million (Rs 115.43 crore) in the year ended March 31, and would be funding the acquisition through internal accruals.

Post-acquisition, the company expects to have a consolidated revenue of $42 million (Rs 193.2 crore) this year.

He said that the acquisition would strengthen Calsoft's competency in the enterprise application services segment since Inatech is a specialised Oracle solutions provider, and services Oracle products worldwide. Also, Inatech has a strong UK base, which would help Calsoft — which primarily has its clients in the US — penetrate that market.

Mr Vedante Srihari, Managing Director and co-founder, Inatech Solutions, said that Calsoft's resources would help Inatech attain global reach.

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