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IT services and solutions firm Kellton Tech has acquired the US-based ProSoft group for a consideration of about Rs 85 crore ($14 million). The company is planning to raise debt to part fund the acquisition. The US-based group comprises four firms with an aggregate workforce of 375 people.
“ProSoft acquisition is going to add Rs 240 crore ($40 million) to our turnover in the next one year and Rs 20 crore ($3.2 million) to profits. We hope to achieve a turnover of Rs 600 crore by the August 2016,” Kellton Tech Founder-Chairman Niranjan Chintam said.
Addressing a press conference here on Monday, he said the company acquired eight firms so far, making it a 1,000-employee entity. “We are planning to go for a QIP (Qualified Institutional Placement) in November,” he said.
He, however, has not indicated the quantum of funds the firms would like to raise through the placement.
Niranjan said the firm would retain the ProSoft name for some time in order to gain from its brand value. “Generally, we absorb the firms we acquire. We might absorb ProSoft too. Alternatively, we may retain it as a suffix to Kellton,” he said.
Kellton is into WSMAC (web, social, mobile, analytics and cloud), while ProSoft offers SAP lifecycle services, business process management and business integration services.
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