MUMBAI: Gemini Communication Ltd (GCL), which provides solutions in the wireless networking space, has acquired a 51% stake in Chennai-based Veeras Infotek for Rs 7 crore, and was funded through internal accruals of GCL.

Veeras Infotek is a Rs 50 crore security and availability solution provider and is expected to strengthen GCL’s network security and business continuity capabilities, and increase the company’s client base.

Ram Kumar, executive director, GCL said, “We plan to piggybank on Veeras Infotek’s proficiency in providing in-depth network security solutions. It will further our vision of becoming a major player. The market in this sphere has very few companies with the required set of skills to address the demand.”

Veeras Infotek works in the areas of virtualisation, collaboration, business service management, information security and business continuity. GCL considers this as a strategic fit into its network security business, Kumar said.

GCL expects Veeras to contribute at least Rs 75-90 crore to FY09 revenue. “We expect GCL’s revenues to grow to from Rs 236.5 crore in FY08 to over Rs 300 crore in FY09,” he said.

The company is eyeing a specialist in wireless and RFID business, located in markets like South America, southern Africa and Middle East.

c_aropol@dnaindia.net