Idhasoft Ltd, a Mumbai-based IT firm, plans to raise another $30 million by January 2009 to fund its acquisition plans.
Hopes to seal deals this fiscal
MUMBAI: Idhasoft Ltd, a Mumbai-based IT firm, plans to raise another $30 million by January 2009 to fund its acquisition plans. It had raised $30 million a few months back from Bahrain-based Arcapita Bank.
New acquisitions, which are likely to be sealed in this fiscal, are expected to be in the areas of manufacturing, retail, healthcare, insurance, and telecommunications.
Ramesh Subramaniam, managing director, Idhasoft, said the firm is in talks with new private financial institutions, besides its existing partners for funding.
“The deal is likely to close before we exhaust the earlier $30 million,” he added.
He said the current market scenario is favourable for acquisitions. “We were keen on further strengthening our portfolio by adding some good companies that were looking for growth funds. I don’t know if such an opportunity will exist all along and have thus decided to pre-pone our fund-raising plans and optimise on the market situation.”
Of the initial $30 million infusion, Idhasoft has deployed 65% ($20 million) in overseas acquisitions. It acquired two firms — Enterpulse Inc and Westbay Inc.
Enterpulse is a content management and high-end Oracle fusion consulting services firm, while Westbay (in which Indhasoft acquired 100% stake) is into high-end business objects specialisation, conduct training and specialises in Netweaver.
Subramaniam said, “We are also in talks with a few Indian companies. The due diligence process is currently on and we should be able to close the deal in the coming months.”
The Idhasoft MD ruled out any impact of decline in valutions on the company.
“Everyone in the industry has been talking about growth and we have shown very positive and transparent growth since inception,” said Subramaniam. “Last year, we registered revenues of $100 million and expect to close this fiscal with revenues in excess of $200 million.”
Arcapita Bank wanted to re-invest at the same valuation when they invested in August. Although I agree it’s not a benchmark for the industry, but we are fortunate to be in a unique situation,” he added.
Idhasoft caters to companies such as retail, manufacturing, retail banking, financial services, insurance and healthcare domains with Fortune 500 companies among its clientele.
Subramaniam said the firm has grown with a combination of organic and inorganic approach.
“It was organic when we started, but now it’s primarily inorganic, which is bringing in all the numbers to our portfolio,” he said.
The promoter’s sentiments are clearly reflected from the fact that in the last 18 months Idhasoft has acquired and integrated more than 25 IT companies.
Most of these were overseas acquisitions primarily in the US and a few were domestic IT firms.
t_ashish@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}