Sonata Software on Wednesday said it has acquired a 50.1% stake in German IT software services firm TUI Infotec for €18 million (nearly $23 million).
BANGALORE: Mid-tier IT services firm Sonata Software on Wednesday said it has acquired a 50.1% stake in German IT software services firm TUI Infotec for €18 million (nearly $23 million). The acquisition will help the Bangalore firm strengthen its presence in the rigid European market.
TUI Infotec is the IT subsidiary of European tourism and shipping group TUI AG, which includes Thomson Holidays in the UK. It employs over 400 professionals with expertise in IT infrastructure management and software applications and posted revenues of around €130 million ($165 million) in 2005. Sonata has ensured that the Hanover-based TUI Infotec will remain the preferred IT supplier to the TUI Group and, in addition, will offer those services to other companies in Europe. “It is important to have a local face in the European market,” Sonata president and managing director B Ramaswamy said.
TUI Infotech has domain knowledge in verticals like travel, tourism, airlines and hospitality, and has two subsidiaries - Travel BA.sys and ACCON RVS, which provide technology platform and back-office services for travel agencies.
“This provides a compelling value proposition for European customers looking for a proven, low-risk, cost-effective and high-quality outsourcing option,” Ramaswamy said.
Sonata employs over 1,700 software engineers in India, serving customers that include Microsoft and Oracle.
It reported profits of Rs 27.54 crore on revenues of Rs 507 crore in 2005-06. About 55% of its total revenue is generated from Europe, with the rest from the US and Asia-Pacific markets.
Sonata expects to accrue revenue from TUI Infotech, which will be transformed as a joint venture from the fourth-quarter of this fiscal.
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