VisualSoft, AppLabs and eSolutions to form new entity
By agencies   |   Friday, 28 October 2005, 19:30 IST
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HYDERABAD: Visualsoft Technology Ltd, an IT services provider, AppLabs Technologies Pvt Ltd, a testing services company, and the Chennai-based eSolutions Private Ltd, have announced a three-way merger plan. The merger is to form a new entity that will provide software testing, product development and services and serve about 400 customers globally. With combined resources of 1,800 employees. With this the companies are expecting that this will bring in operational rationalization and optimize resource utilization. Announcing this the Chief Financial Officer of VisualSoft, V Krishnan said, “it is a win-win situation for all the three companies. We would be able to provide technology solutions, testing and enterprise services. The new entity would be able to notch up upwards of $40 million in revenues." "Once the merger process was over and the necessary regulatory issues sorted out, we would be able to reflect good performance during the next financial year,” he said. AppLabs has a turnover of $22 million and eSolutions has total revenues of $1.2 million. For the second quarter of the current financial year VisualSoft recorded a total income of $12.30 million and a net profit of $1.38 million as against total income of $10.71 million and a net profit of $1.48 million for the corresponding quarter last year.

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