Valtech acquires Majoris for e8.4 million
By siliconindia   |   Friday, 10 September 2004, 19:30 IST
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BANGALORE: French technology consulting firm Valtech has acquired Bangalore-based Majoris Systems for e8.4 million (Rs 47.5 crore). The European firm has announced that Valtech India, which manages its existing operations in India, and Majoris will merge in the coming weeks to form a common offshore delivery centre. ET had first reported on August 23 that Valtech is planning to buy Majoris. Valtech said that it would pay a base price of 4.8 million euros in cash for Majoris while the agreement also includes a three year earn-out that could add up to e3.6 million to the transaction price. The deal will be financed through existing and future free cash flow, according to the company statement. Avendus Advisors were the financial advisors for Majoris in this deal. Valtech has also announced that it will invest up to 1 million euros over the next one year to build up the Indian delivery centre infrastructure, which will have a combined strength of 300 employees. The new entity will have 18 active customers in Europe and the United States. “Valtech can now leverage an experienced delivery center of more than 300 employees in India. The acquisition of Majoris, an Indian player delivering the highest quality standard with a strong management team, is a quite significant step of our offshore strategy,’’ said Jean-Yves Hardy, Chief Executive Officer of Valtech. “We have the advantage of the existing client base from our global operations which would be supported by the team in India. Valtech India currently has about 100 people and we will be targeting 800 employees by 2004-end to keep pace with our expansion plans,’’ he said. Majoris was founded in 2000 by B V Venkatesh, previously the CEO of BFL, and has 200 billable employees and generated revenues of €5 million in 2003. While announcing its second quarter results on September 9, Valtech stated that the company expects revenues to touch €43 million during the second half of the current year.

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