Calsoft inks deal with Inatech

California Software Company Ltd (Calsoft) on September 14, 2006 has announced the signing of a Letter Of Intent (LOI) to acquire majority equity stake of Inatech Solutions UK and Inatech InfoSolutions India. The LOI will culminate into a definitive share purchase agreement, subject to standard closing conditions, necessary approvals and completion of all formalities. The entire process should be completed by October 31, 2006.

Inatech is a specialized Oracle solution provider with a major focus in construction, hi-tech, manufacturing, distribution and the government sector. The Company enjoys the highest level of Oracle partnership - Certified Advantage Partner in the EMEA region. This elite status allows it to service the full range of Oracle products worldwide. Inatech has primarily focused on the UK market and continues to work with Oracle's E-Business suite and new technologies like fusion and mobile applications.

Mr. S (Sam) Santhosh, Managing Director & CEO, of the Company, said, "Inatech brings rich Oracle expertise in the enterprise space, especially within the UK market. Enterprise business is one of our focus areas. This will further enhance our value offering globally."

Inatech enterprise valuation was at Rs 30 crores. The deal envisages initial purchase of 51% of Inatech shares by the Company through a combination of stock and cash. Spark Capital Advisors (I) Pvt Ltd, Chennai provided the financial advisory services for this deal.

The Company plans to continue its dual growth strategy - organic growth combined with prudent and focused acquisition that brings synergies to its customer offerings. The Company posted consolidated revenues of USD 26.18 million (Rs 115.43 crores) in year ended March 31, 2006 and achieved consolidated revenues of USD 7.93 million (Rs 36.24 crores) in 1st quarter ended June 2006 of current fiscal year.

Source : Equity Bulls

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