Stock Report

Gemini Communication acquires Chennai based Veeras Infotech

Posted On : 2008-06-16 06:52:26( TIMEZONE : IST )

Gemini Communication acquires Chennai based Veeras Infotech

Gemini Communication Ltd (GCL), one of India's most innovative IT & Networking Company has acquired a majority stake in privately held Veeras Infotek, a Chennai based Rs 50 Crore security and availability solution provider. The deal valued at around Rs 7 crores is funded through internal accruals of GCL.

Veeras Infotek is a strategic addition to GCL's network security business. The acquisition will extend GCL's network security and Business Continuity capabilities and increase the Company's client base.

Veeras Infotek's pioneering work in the areas of Virtualisation, Collaboration, Business Service Management, Information Security and Business Continuity is well recognized and appreciated in Corporate India.

"The addition of Veeras infotek will advance GCL's vision of becoming a major player in network security space" said Mr. R Ram Kumar, Executive Director, GCL. The market for this space has very few Companies with the required skill set to address the demand. The potential for a quality player in Network Security, Availability, Business Continuity, Business Intelligence & Services Management segment with a good reach will generate multi fold opportunities.

"Veeras Infotek's solutions, talent and customers, complement GCL's business. We are keen on retaining & growing the senior management of Veeras infotek and will extend our expertise.

The stock closed the day at Rs.203.50, up by Rs.9.65 or 4.98%. The stock hit an intraday high of Rs.203.50 and low of Rs.195.75.

The total traded quantity was 12713 compared to 2 week average of 51913.

Source : Equity Bulls