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Alten acquires Chennai based Calsoft product business for 
100 Crore
By siliconindia
|
Tuesday, 19 April 2011, 17:59 IST
Chennai: Calsoft is all set to sell its Outsourced Product Development Business. A staggering 
100 Crore deal has been finalized between this Chennai based California Software Company and Alten Europe. The sale included all tangible and intangible assets.
Alten Europe, was incorporated in 2004 and is based in Boulogne-Billancourt, France. Alten's market covers the full range of consulting services, technical assistance, performance of fixed price projects and outsourced platforms in the field of Technology Consulting and Engineering (TCE) well as Information Systems and Networks.
The disposal of its Product development business would facilitate Calsoft to focus on expanding its enterprise business and enhance market value through strategic investment divisions.
It has decided to dispose of its investment in India and U.S. and business units in Chennai and Bangalore for a consideration not below Rs 100 crore.
However the transaction is subjected to regulatory approvals and a definitive structure to be agreed between the parties.
The Managing Director of Calsoft group Sam Santosh said that the market capitalization of the Company is Rs 60 crore. The company is grossly undervalued. However this transaction proved that the market has buyers for an individual business unit of the company for Rs 100 crore, almost twice its market capitalisation.
With the acquisition of Web spectrum, a software company in the year 2004 Calsoft expanded its operations to Bangalore employing around 2500 employees under it. It concentrated on developing products in next generation technologies, 3G, packet cable, wireless networks, IP.
The stock was at Rs 42, up 2.94 percent on the NSE. It touched a high of Rs 43 and low of Rs 41.10 in trade so far.
100 Crore deal has been finalized between this Chennai based California Software Company and Alten Europe. The sale included all tangible and intangible assets.
Alten Europe, was incorporated in 2004 and is based in Boulogne-Billancourt, France. Alten's market covers the full range of consulting services, technical assistance, performance of fixed price projects and outsourced platforms in the field of Technology Consulting and Engineering (TCE) well as Information Systems and Networks.
The disposal of its Product development business would facilitate Calsoft to focus on expanding its enterprise business and enhance market value through strategic investment divisions.
It has decided to dispose of its investment in India and U.S. and business units in Chennai and Bangalore for a consideration not below Rs 100 crore.
However the transaction is subjected to regulatory approvals and a definitive structure to be agreed between the parties.
The Managing Director of Calsoft group Sam Santosh said that the market capitalization of the Company is Rs 60 crore. The company is grossly undervalued. However this transaction proved that the market has buyers for an individual business unit of the company for Rs 100 crore, almost twice its market capitalisation.
With the acquisition of Web spectrum, a software company in the year 2004 Calsoft expanded its operations to Bangalore employing around 2500 employees under it. It concentrated on developing products in next generation technologies, 3G, packet cable, wireless networks, IP.
The stock was at Rs 42, up 2.94 percent on the NSE. It touched a high of Rs 43 and low of Rs 41.10 in trade so far.