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Cambridge Technology acquires Q-Soft for 
130 Mn
Wednesday, 23 January 2008, 16:57 IST
Bangalore: Cambridge Technology Enterprises (CTE), a leading mid-size IT services provider, announced Tuesday acquiring Bangalore-based Q-Soft Systems & Solutions in an all-cash deal for 
130 million ($3.3 million).
The 12-year-old Q-Soft provides managed services using Oracle products and Unix/Linux systems to diverse verticals such as banks, telecos and manufacturing firms across India directly or as a third-party vendor to leading system integrators such as Wipro, Satyam, IBM and HP.
"The acquisition will enable us to cross-sell Q-Soft's services to our clients in North America and Europe and in turn offer our domain expertise in SoA (service oriented architecture) solutions and enterprise transformation applications to Q-Soft's customers in India," CTE CEO Bhaskar Panigrahi told reporters here.
CTE will fund the acquisition from the money (240 million) raised from its public offering last fiscal (FY 2007) and capital raised in the US from strategic investors and venture partners.
Post-acquisition, CTE headcount will increase to 500 with 200 of Q-Soft employees coming on board. As an Oracle-certified partner, Q-Soft caters to large and mid-size firms with database services, network management services, middleware and ERP (enterprise resource planning) solutions.
Surveys by Gartners and Foresters have revealed that about 60 percent of IT spending by 2012 will be on SoA. It has become the main concern of chief information officers in small and medium businesses (SMBs).
With about 100,000 mid-size firms world over, including 66,000 in North America, 20,000 firms in Europe and 10,000 in APAC, the global market size of SoA products and services are estimated to be $600 billion.
"Mid-size market opportunity in SoA space has shot up to $96 billion from $1.2 billion five years ago. The addressable market for firms like ours is estimated to be $32 billion," Panigrahi noted.
The buyout will generate additional revenue in the ERP segment, augment service offerings with off-shore Oracle service portfolio and enable CTE to become a one-stop shop for IT services to mid-sized enterprises worldwide.
With two acquisitions during this fiscal (2007-08) - Bangalore-based ComCreation for 140 million ($3.5 million) and US-based Reilly & Associates for 81 million, the 230-million Cambridge's inorganic growth strategy is to remain nimble, fast and cost-effective.
As part of its global strategy to balance revenue and cost, CTE will set up near-shore centres that will provide end-to-end products and services.
"Our offshore strategy, global delivery model and CMMI level 5 will add value and local support to present and prospective customers, besides moving up the value chain," Panigrahi added.
For the first nine months (April-December) of this fiscal, CTE posted topline revenue of 230 million.
Source: IANS
130 million ($3.3 million).
The 12-year-old Q-Soft provides managed services using Oracle products and Unix/Linux systems to diverse verticals such as banks, telecos and manufacturing firms across India directly or as a third-party vendor to leading system integrators such as Wipro, Satyam, IBM and HP.
"The acquisition will enable us to cross-sell Q-Soft's services to our clients in North America and Europe and in turn offer our domain expertise in SoA (service oriented architecture) solutions and enterprise transformation applications to Q-Soft's customers in India," CTE CEO Bhaskar Panigrahi told reporters here.
CTE will fund the acquisition from the money (240 million) raised from its public offering last fiscal (FY 2007) and capital raised in the US from strategic investors and venture partners.
Post-acquisition, CTE headcount will increase to 500 with 200 of Q-Soft employees coming on board. As an Oracle-certified partner, Q-Soft caters to large and mid-size firms with database services, network management services, middleware and ERP (enterprise resource planning) solutions.
Surveys by Gartners and Foresters have revealed that about 60 percent of IT spending by 2012 will be on SoA. It has become the main concern of chief information officers in small and medium businesses (SMBs).
With about 100,000 mid-size firms world over, including 66,000 in North America, 20,000 firms in Europe and 10,000 in APAC, the global market size of SoA products and services are estimated to be $600 billion.
"Mid-size market opportunity in SoA space has shot up to $96 billion from $1.2 billion five years ago. The addressable market for firms like ours is estimated to be $32 billion," Panigrahi noted.
The buyout will generate additional revenue in the ERP segment, augment service offerings with off-shore Oracle service portfolio and enable CTE to become a one-stop shop for IT services to mid-sized enterprises worldwide.
With two acquisitions during this fiscal (2007-08) - Bangalore-based ComCreation for 140 million ($3.5 million) and US-based Reilly & Associates for 81 million, the 230-million Cambridge's inorganic growth strategy is to remain nimble, fast and cost-effective.
As part of its global strategy to balance revenue and cost, CTE will set up near-shore centres that will provide end-to-end products and services.
"Our offshore strategy, global delivery model and CMMI level 5 will add value and local support to present and prospective customers, besides moving up the value chain," Panigrahi added.
For the first nine months (April-December) of this fiscal, CTE posted topline revenue of 230 million.
Source: IANS