Geometric plans acquisition abroad

By agencies   |   Tuesday, 20 June 2006, 07:00 Hrs
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MUMBAI: One of India’s largest IT services company Geometric Software Solutions Co. Ltd. will soon acquire a company abroad, the company’s chief said today.

Manu Parpia, the CEO of Geometric said the announcement of the acquisition of an engineering services company abroad for $25 million would be made soon.

He also said the company plans to double its revenues from its engineering services division during 2006-07 and the acquisition would help gain size and compete better against larger rivals for outsourcing orders.

"We have to adopt an attacking strategy and for that we need size," Parpia said.

The company that Geometric planned to acquire had the capacity to serve Eastern Europe and China, where the Indian firm was not present, he said.

The two companies had already signed a preliminary document for the acquisition, he added.

Engineering Services, which typically cover computer-aided engineering and design services, provided Geometric with a de-risking opportunity from its mainstay software offerings, Parpia said.

"We do not want to put all our eggs into one basket... outsourcing in engineering services provides a huge opportunity for us," he said.

The company had already raised $10 million by selling shares and $15 million in debt to fund the acquisition, he added.

Parpia said the company hoped to take the division's revenue to 46 percent of total revenue from 7 percent in 2005-06.

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