Acquisition will help enter new geographies, says President
Infinite has funded the Comnet buy-out through its internal accruals. Temasek owns a nine per cent stake in Infinite.
Bangalore Sept. 28 Bangalore-based Infinite Computer Solutions has acquired the US-based Comnet International Company, an outsourced product firm focused on the telecom space, for an undisclosed sum.
The privately-held Comnet, with a 325 people development centre in Chennai, clocked revenues of $9.4 million in fiscal 2007 and is expected to achieve $13 million in fiscal 2008.
The company develops software for a clientele that includes major telecom networking players such as Alcatel Lucent, MetaSolv Software, Tellabs, Panduit, Maron Structure Technologies, and service providers such as Verizon, AT&T, BellSouth, Quest, Frontier and Rogers Cable, among others.
Announcing the buy-out, Mr Upinder Zutshi, CEO, Infinite, said the acquisition marks the company’s planned shift to telecommunications solution-centric segments as the major and key vertical focus area.
The investment will help Infinite augment its services for telecom and enterprise networks, service providers, device and appliance manufacturers and telecom, media and entertainment enterprises, he said.
The company has earmarked to invest $30 million to beef up its presence in the telecom and is looking to acquire more companies, he said.
“We are now poised to become a major telecommunications player in the Indian IT field. The acquisition also gives us entry into newer geographies and also opens up cross selling opportunities,” said Mr Neeraj Tewari, President, Infinite.
The company is targeting a revenue of $300 million by 2010-11 from the current $104 million, the bulk of which would come from its telecom practice. Infinite expects to maintain Comnet as a separate subsidiary.
A zero-debt company, Infinite has funded the Comnet buy-out through its internal accruals. Temasek owns a nine per cent stake in Infinite, while the rest is held by promoters. “We may look at raising funds 12-15 months down the line” said Mr Zutshi, adding the company was open to various options including a public offer.
The founder of Comnet, Mr Ravi Ravichandran, said post-buy-out Infinite would expand the product portfolio of Comnet. “We will apply our combined expertise for product design and development, testing services, customer technical support, training and Web enablement in addition to sales and marketing support,” he said.