Rolta closing in on two deals
Rolta, the information technology firm focusing on defence and homeland security, is likely to strike two deals, according to sources familiar with the development.
Rolta, the information technology firm focusing on defence and homeland security, is likely to strike two deals – one an acquisition and the other a partnership – according to sources familiar with the development.
That follows a dozen acquisitions across verticals like IT, defence, geospatial technology since 2007-2008.
Rolta is likely to bag a contract from a UK utility major to manage its IT infrastructure, and also close a deal for an exclusive partnership with the largest geospatial technology company in the world.
These businesses are a Rs50,000 crore + market, according to sources.
Kamal K Singh, chairman and MD of Rolta, refused to comment, saying Rolta doesn’t respond to speculation.
Rolta has added about 6-7% to its topline through past acquisitions.
“We are an IP-driven company, and thus, we typically acquire companies with 25-30 years experience in a particular area, which can help us to increase our IPs, as well as better more competent solutions,” he said.
“Typically, we allocate about $25-50 million in each year’s budget for these acquisitions. However, all our acquisitions are usually medium-sized companies, which are easier to integrate with Rolta.”
Rolta entered the domain of IT infrastructure with the acquisition of AdvizeX for $32 million in November.
AdvizeX’s domain knowledge played a part in Rolta winning a $31 million contract earlier this month from Memphis Light, Gas and Water for an Oracle ERP project, Singh said.
Rolta is expecting AdvizeX to add 7-8% to topline its June-year closing.
The next area of focus is on bettering the company’s core strength verticals – geospatial technology, defence and homeland security — through joint ventures and exclusive partnerships.
Incidentally, Rolta is one of four Indian companies in the running for a defence department contract for developing a ‘Tactical Communication System’.