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Catalytic to close in India, Polaris to acquire its Indian assets
By siliconindia
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Tuesday, 24 August 2010, 17:26 IST
Chennai: Polaris Software Lab is in plans to acquire the Indian assets of the U.S. based Catalytic Software, but the deal involves only the transfer of real estate, not business or employees of Catalytic. Catalytic software is winding up its operations in Hyderabad, said two persons involved in the transaction.
Polaris will now have an access to Catalytic's development centre and to the land at Srikakulam. In order to complete the deal, Polaris might pay around 
50 crore for the facility and will complete the deal in couple of weeks. R Srikanth, CFO at Polaris said such talks are speculative and denied such plans.
Polaris already has an employee count of 9,000 and has planned to hire 2,000 more in the current fiscal year. "Polaris may have agreed to buy the company to acquire the land because if the campus has tax benefits it cannot be simply traded between two parties. Instead , Polaris might choose to buy the company itself, which is almost a shell company in this case, to get the land," said an analyst tracking Polaris.
The property sale to Polaris is part of the company's plan to gradually close its operations in India. Catalytic Software is also trying to offload its business and employees to another firm. "Negotiations are currently on, so we cannot comment on the nature or structure of this transaction," said the spokesperson at Prithvi Information Solutions to which Polaris is trying to offload its India operations and employees.
"There were more than 200 employees at this facility six months back, but now it's dwindled to over 100. We are hearing that talks are on with Polaris and Prithvi," said a senior official at Catalytic's Hyderabad office.
50 crore for the facility and will complete the deal in couple of weeks. R Srikanth, CFO at Polaris said such talks are speculative and denied such plans.
Polaris already has an employee count of 9,000 and has planned to hire 2,000 more in the current fiscal year. "Polaris may have agreed to buy the company to acquire the land because if the campus has tax benefits it cannot be simply traded between two parties. Instead , Polaris might choose to buy the company itself, which is almost a shell company in this case, to get the land," said an analyst tracking Polaris.
The property sale to Polaris is part of the company's plan to gradually close its operations in India. Catalytic Software is also trying to offload its business and employees to another firm. "Negotiations are currently on, so we cannot comment on the nature or structure of this transaction," said the spokesperson at Prithvi Information Solutions to which Polaris is trying to offload its India operations and employees.
"There were more than 200 employees at this facility six months back, but now it's dwindled to over 100. We are hearing that talks are on with Polaris and Prithvi," said a senior official at Catalytic's Hyderabad office.