INFOTECH TO ACQUIRE GERMAN COMPANY

Ch Prashanth Reddy & K Rajani Kanth, Hyderabad
Business Standard

Technology solutions and engineering design services provider, Infotech Enterprises Limited (IEL), is all set to acquire a German auto engineering company. “Due diligence of the target company is on and we are expecting to close the transaction by this December,” IEL chairman and managing director, BVR Mohan Reddy said.

Stating that it was a fairly large acquisition, he said the German company’s revenues last year stood at $40 million (about Rs 184 crore).

Acquisition of the German company is expected to strengthen IEL’s automobile vertical, which has an addressable market of $30 billion in Europe, Japan and the US.

The Hyderabad-based IEL has recently acquired California-based semiconductor design company Time To Market (TTM) for an undisclosed amount. TTM is expected to post a revenue of $10 million (Rs 46 crore) this year as against $7.5 million (Rs 34.5 crore) last year.

“We will add few more acquisitions to our group,” Reddy said, emphasising that the company’s inorganic growth plan was primarily aimed at customer acquisition and spreading IEL’s geographical presence.

“Indian companies can’t remain as pure outsourcing enterprises any longer. This is not going to give operations of scale. We have to be end-to-end solutions provider, which is only possible through a local presence,” he said.