Kellton Tech on Monday acquired a US-based enterprise solutions
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Hyderabad: City-based IT services and solutions company Kellton Tech on Monday acquired a US-based enterprise solutions firm ProSoft Group for a consideration of $14 million (Rs 84 crore).
Announcing the deal, Niranjan Chintam said the acquisition is a part of Kellton Tech’s larger strategy of expanding their portfolio and geographic reach. “ProSoft is into the business of enterprise resource planning (SAP lifecycle services), business process management, business integration services (IBM Webspher, WebMethods) and business analytics. It has top United States corporations such as Johnson and Johnsonm JPMorgan, Jcrew, etc as its clients,” Mr Chintam said.
The combined headcount of both the companies would be 850. Of this, 400 are in the US and 250 in Gurgaon and 200 in Hyderabad. Though the acquisition would result into some redundancies, Mr Chintam said that there won’t be any retrenchments.
Giving the rationale for ProSoft accepting the acquisition, its chief executive officer Raj Gupta said, “Having a listed company as a promoter would give us credibility in bagging contracts from the companies, which look for our size of operations.” He added that the acquisition would be funded in 60:40 debt-equity ratio.
( Source : dc correspondent )
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