Aztec acquires Disha for $12.1 million

Monday, 20 September 2004, 07:00 Hrs
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BANGALORE: Aztec Software and Technology Services Ltd., the software product firm based here, inked an agreement Monday to acquire Disha Technologies (India) Ltd. for $12.1 million (551 million) in a cash-cum-stock deal.

Aztec will take over the Pune-based software product testing company for $9.6 million in cash and $2.5 million in stock.

Disha has about $2 million in cash on its balance sheet.

Announcing the deal, Aztec managing director V. Chandrasekaran told reporters the acquisition would enable his company to deliver unique value to software product firms with the engineering capabilities of Disha.

"This is a strategic response to meet our customers' need for managing their rapid product development, while maintaining independence in testing," Chandrasekaran stated.

As the only listed Indian software firm focused on providing product lifecycle services to software product companies, the 420-million Aztec's services span design and development, testing and quality engineering, maintenance and support and professional services.

"As part of our growth strategy, we have been looking to buy out firms like Disha for strengthening our offerings to customers across verticals.

The acquisition will help us offer expertise in testing, a critical component in software product lifecycle, and address the needs of the independent software vendors segment," Chandrasekaran disclosed.

With about 400 plus employees and marquee customers such as Microsoft and HP (Hewlett Packard), Disha has developed methodologies in test strategy, planning, test consulting, test automation and execution.

"Becoming a part of Aztec post-acquisition will be a win-win situation to Disha as we will have one of the best software product firms in the IT business," said Disha CEO Samir Bodas.

Disha posted a revenue of $7.8 million (Rs 355 million) during the last 12 months (September 2003-August 31, 2004).

With offices at Santa Clara in the US and London and an offshore development centre in Bangalore and about 30 customers, Aztec employs about 700 software engineers for providing product lifecycle services to software firms and IT enterprises.

With three offices in the US and two testing labs at Pune and Hyderabad, Disha currently caters to 15 customers as one of India's leading software testing service vendors.

Disha plans to open sales offices and labs in Europe and northeastern US in the next 12 months to expand its operations as subsidiary of Aztec.

Source: IANS
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