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Mr B.V. R. Mohan Reddy

Our Bureau

Bangalore, Oct. 24 Infotech Enterprises Ltd is scouting for acquisitions to beef up its capabilities in areas of hi-tech, telecom and automotive verticals mainly in the US and Europe.

“We are looking at companies with revenues upwards of $10 million and which should be cash accretive to EPS (earnings per share),” said Mr B.V.R. Mohan Reddy, Founder, Chairman and Managing Director of Infotech Enterprises Ltd.

Infotech, Mr Reddy said, was in talks with some companies, but did not disclose further details or a time-frame to conclude the buy-outs.

The company has approximately $100 million cash, which it plans to use to fund the acquisitions.

Mr Reddy was addressing a press conference after inaugurating the 1,150 seat new campus at Electronics City in Bangalore. Infotech has invested about Rs 40 crore in the new facility, which would house the company’s design services teams in areas of aerospace, avionics and rail system.

Currently, Infotech has about 700 employees in Bangalore.

Further, Mr Reddy said the company’s joint venture with Hindustan Aeronautics Ltd formed in May this year will soon be operational from Infotech’s new facility in Bangalore.

The joint venture — Infotech HAL Ltd formed specifically to pursue the contracts arising out of the defence offsets has an initial equity of Rs 28 crore and is targeting a revenue of around $70 million by 2012.

Infotech HAL expects to hire about 200 people in its first year of operations and some 2,000 people by 2012.

Infotech reported a net profit of Rs 25.2 crore on revenues of Rs 161 crore for the quarter-ended September 2007 as compared to a net of Rs 11.96 crore on revenues of Rs 148 crore in the June quarter.

More Stories on : Mergers & Acquisitions | Software

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