Indian firm buys U.S based company

By siliconindia   |   Thursday, 22 March 2007, 05:00 Hrs
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CHENNAI: Quintegra Solutions, a Chennai based software services company, has acquired U.S.-based software development and consultancy company, ValleyUS Inc., and a Singapore-based software product company, JadeLite Technologies, for a consideration of 46.50 crore ($10.5 million). Addressing a press conference here, Shankarraman Vaidyanathan, Chairman and Managing Director of Quintegra, said that his company had acquired 100 per cent stock in ValleyUS at $9.5 million and JadeLite at $1 million. Vaidyanathan said the acquisition would substantially strengthen Quintegra's U.S. presence. The President of ValleyUS, Sunita K. Nag, quoted the strong synergies between the two companies among the reasons for main reasons for this acquisition along with Quintegra being a listed company and finally ValleyUS had grown to the extent possible and now it was in need of more funds to expand further, she added. Quintegra, a SEI CMM Level 4 certified company, has been operating out of Chennai for the last 12 years. Its shares are listed on National Stock Exchange and Madras Stock Exchange. It's expected to close the current year with revenues of Rs 70 crore ($16 million), twice of last year's Rs 35 crore ($8 million). The acquisition of ValleyUS will strengthen Quintegras US presence with clientele in domains like client-server, legacy, CRM, and e-Commerce. The acquisition of JadeLite, on the other hand, will improve Quintegras market share in the education and training management software sector. Ernst & Young did the due diligence of the take over of these companies. The acquisitions are in line with the companys organic and inorganic strategy to become one of the top IT companies in India with revenue of $100 million by the year 2010, said Vaidyanathan. Quintegra has raised a loan of $5 Million from State Bank of India for part-funding the takeover of ValleyUS. The remaining amount will be paid on earn out model over a period linked to the firm achieving certain milestones. ValleyUS, started by Indian American Sunita Nag in 1999, has recorded revenue of $12 million for the calendar year ended 31 December 2006.

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