Infotech to acquire American firm for $19m

Hyderabad: Hyderabad-based technology firm Infotech Enterprises will acquire US-based Softential for nearly $19 million in cash (Rs 114 crore), aimed at strengthening its telecom and enterprise solutions portfolio. Its wholly owned subsidiary Infotech Enterprises America, Inc. has signed a definitive agreement to acquire Virginia based company.

The target company offers service management and service assurance solutions for telecommunications and cable operators, enterprise customers and the public sector. Infotech has been scouting for right acquisitions for the last two years.

“We are paying 1.1 times FY13 revenue as upfront and one year earnout based on financial performance parameters. Earnout amount can’t be disclosed due to disclosure restrictions. $17 million is current revenue of Softential,” Infotech said in a statement.

The deal is expected to close in the next 2-3 weeks. The acquisition will strengthens Infotech’s telecom business unit by adding 140 skilled global resources. Infotech has 1,300 people in the United States, which accounts for about 60 per cent of its revenues. Softential designs, implements and manages systems and applications that allow customers to reliably monitor and control the performance of their communication networks and business services in real time.