Processing .....please wait.. 
The article has been forwarded.... 
HCL, Ingram Micro in talks to buy stake in Sonata Software
By siliconindia
|
Wednesday, 03 November 2010, 19:57 IST
Mumbai: HCL Group and Ingram Micro, U.S. based multinational distributor of IT products, are negotiating the acquisition of a controlling stake in Bangalore-based Sonata Software, reports N Shivapriya and Prashant Mahesh from The Economic Times.
Sonata Software founders Rajan Raheja and SB Ghia, who hold about 44 percent in the company, want to sell their stake. According to the report, the stake is valued at 
284 ccrore.
Sonata is a mid-sized software provider focused on offshore software services and domestic software products distribution and implementation. The domestic software business of Sonata, which contributes a bulk of its revenues, is what potential buyers are finding attractive. Sonata's domestic business competes with the likes of Wipro in India. "With some customers, such as IBM, HCL Infosystems does not have tier one status. This acquisition could help them get there," the report said citing people who are familiar with the transaction.
Ingram Micro is one of the largest distributors of IT hardware and software products globally and was ranked 67 in the Fortune 500 list in 2009. Acquiring Sonata's software re-selling business will help to expand its presence in India. HCL Group firm, HCL Infosystem, is also interested in Sonata for the same reason.
Sonata has relationships with leading software and solutions vendors such as IBM, Microsoft and Oracle and is an implementation partner for them. It also has a joint venture with German travel group TUI. "Sonata would be a good fit for any large IT company interested in getting a stronger foothold in the travel segment. Its offshore IT services business is the most profitable contributing about 20 percent of its revenue, but nearly 70 percent of its profits," the report quoted Raunak Onkar, Analyst with brokerage Parag Parikh Financial Advisory Services, as saying.
284 ccrore.
Sonata is a mid-sized software provider focused on offshore software services and domestic software products distribution and implementation. The domestic software business of Sonata, which contributes a bulk of its revenues, is what potential buyers are finding attractive. Sonata's domestic business competes with the likes of Wipro in India. "With some customers, such as IBM, HCL Infosystems does not have tier one status. This acquisition could help them get there," the report said citing people who are familiar with the transaction.
Ingram Micro is one of the largest distributors of IT hardware and software products globally and was ranked 67 in the Fortune 500 list in 2009. Acquiring Sonata's software re-selling business will help to expand its presence in India. HCL Group firm, HCL Infosystem, is also interested in Sonata for the same reason.
Sonata has relationships with leading software and solutions vendors such as IBM, Microsoft and Oracle and is an implementation partner for them. It also has a joint venture with German travel group TUI. "Sonata would be a good fit for any large IT company interested in getting a stronger foothold in the travel segment. Its offshore IT services business is the most profitable contributing about 20 percent of its revenue, but nearly 70 percent of its profits," the report quoted Raunak Onkar, Analyst with brokerage Parag Parikh Financial Advisory Services, as saying.