Allied Digital nears UK acquisition

MUMBAI: Close on the heels of its acquisition of EnPointe Global Services, Allied Digital Services (ADSL) is in ‘the final stages of buying a similar infrastructure management services (IMS) capability’ in the UK, sources close to the development said.

IMS involves IT asset management, remote control for problem resolution, patch management, operating system imaging & migration, software license monitoring etc.

In June DNA Money had reported about ADSL’s intent to make an acquisition in the IMS space in the US, Europe and India. A month later, ADSL announced its acquisition of a 80% stake in US-based EnPointe Global Services for $28 million.
The UK acquisition too will be announced soon. Two top ADSL executives are set to reach London on Saturday to finalise the deal. “The UK buyout would be for about $30 million,” the source said.

Meanwhile, ADSL is seeking to boost its traditional systems integration (SI) business by signing contracts (over Rs 50 crore each) with large companies, the source said.

ADSL’s revenues stood at Rs 156.3 crore for the year ended March 31, 2007, in which the solutions business contributed 20.3%, while services contributed 79%.
In its Q1 (April-June) 2008-09, the company’s income rose 38% to Rs 90.20 crore from  Rs 65.23 crore in Q1 2007-8.

Net profit rose 73% to  Rs 15.66 crore.