Wednesday, March 21, 2007

Chennai-based IT firm Quintegra acquires firms in US, Singapore

Chennai-based listed software firm Quintegra Solutions has acquired US-based ValleyUS and Jadelite Technologies of Singapore for a total consideration of $ 10.5 mn (Rs. 46.50 crores). ValleyUS cost $9.5 mn, while the Singapore firm $1 mn.

ValleyUS is focused on domains like client-server, legacy, CRM and e-commerce. It has partnership with big five IT consulting firms in the Silicon Valley. Its major client is publishing house CTB McGraw Hill. Others are EBay, Wal-Mart, E-trade, Wells Fargo Bank, Yahoo, Google and BEA Systems. The acquisition of JadeLite, which has award-winning ERP for educational sector, is expected to improve Quintegra’s market share in the education and training management software.

Quintegra had raised a loan of $5 mn from State Bank of India for part funding the takeover of ValleyUS. The balance amount is to be paid on an earn-out model over a period linked to the firm achieving certain milestones. The takeovers will increase his people strength to 600 from the current 400.

The US market accounts for bulk of company’s revenues and the takeover of ValleyUS has synergies to strengthen its presence there. The US firm had clocked revenues of Rs. 53 crores ($12 mn) for the year ended March 31, 2006 and it is projected to achieve Rs. 80 crores ($18 mn) in 2007-08. The Singapore firm is expected to achieve revenues of Rs. 80 to Rs. 90 crores in the next three years.

Read the article in The Economic Times.

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