Kellton Tech, the IT services provider, will close the acquisition of an Indian technology firm before June, according to Niranjan Chintam, founder Chairman.
The BSE-listed, $35-million revenues company has also firmed up plans to acquire 2-3 more firms of around $10 million revenue size. The acquisitions will be in the data processing and analytics, systems, applications and products and some emerging technology areas.Plans expansion
The Hyderabad-headquartered company with a target to achieve $100 million revenues by August 2016, Kellton wants to expand presence in the US — New Jersey and California and India — Hyderabad and Gurgaon. It wants to focus more on the Internet-of-Things, SMAC (social media, mobility, analytics and cloud) and data security.
The present acquisition, which he did not name on confidentiality, will be through 100 per cent debt. Banks and financial institutions are willing to fund it. The objective is to increase the customer base and presence in the web technology space. “We may require some $25 million for the acquisitions targeted for the next one year, which we will raise through a 60:40 debt-equity ratio,” he said.
“The acquisition-led growth model has been fruitful to us. In the last six years since the buyout of VMS Tech, we have acquired seven small firms of $8-9 million revenues,” Niranjan told BusinessLine .Tech support
Kellton is also increasing its tech support to e-commerce start-ups with mobile apps. “We have worked with companies like Flipkart, Make My trip, PVR, Jabong etc.,” he said.
In India, the company plans to increase its staff in Hyderabad centre by 100 from 200. It has done a major ₹27-crore Surveillance Access Control project for the Kandla Port, involving a range of security systems that are networked and sharing information. This will be replicated in other ports where it will big, he said.