Softpro acquires Cura Risk Management Software
By siliconindia   |   Tuesday, 16 June 2009, 23:15 IST   |    2 Comments
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Softpro acquires Cura Risk Management Software
Hyderabad: Softpro Systems, a Hyderabad based software firm, has acquired a Johannesburg based Cura Risk Management Software for a structured consideration of $19 Million. As per the structured consideration, Softpro will initially pay $16 million and will pay the remaining $ 3 million over the next three years depending on the performance. Cura is a major player in the field of governance, risk management and compliance (GRC) space with revenue of $8 billion. "We are planning to raise about Rs 53 crore immediately through the issuance of equity and warrants and the promoters and associates of Softpro would be given a preferential offer," said G Bala Reddy, CMD, Softpro. The company is planning to raise funds to take the acquisition forward. The fundraising would be in a debt-equity ratio of 80:20. "Softpro was in trouble when we took it over in April 2008. Today, the company has a revenue base of Rs seven crore. With the acquisition of Cura, we are now setting our target for $200 million in the next five years. In fact, Cura will drive in most of the revenue for us in the coming years," Reddy said. The price of the company in the BSE had gone up with the news of the acquisition from some time, as even on Monday, the scrap price closed at 212. The company is also planning to conduct an EGM in July to seek shareholder approval for the fund raising plans.

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