New Delhi: Software services firm Infotech Enterprises plans to buy three firms by March and has set aside Rs3 billion rupees for the acquisitions, its chairman said on Monday.
Infotech got 92% of its Rs6.74 billion revenue in 2007/08 by providing engineering design and information technology services to aerospace, automotive, telecom, utilities and government sector in Europe and North America.
“Valuations have come down and there is very little money in the world,” B V R Mohan Reddy told a news conference on the launch of firm’s new facility in Noida.
The Hyderabad-based company is currently conducting due diligence to acquire a European firm in auto engineering segment and will buy two more companies in the next quarter, Reddy said.
“Our acquisitions will be targeted around $20 million. We cannot be a smaller company than that,” he said.
Infotech acquired California-based Time to Market Inc, a chip design and verification services company, earlier in September and said it will pursue other acquisitions in high tech domain.
Reddy said Infotech, which counts AT&T, BT Group and Boeing as clients, plans to invest Rs1.60 billion in the current financial year to expand facilities in India.
“We have already invested Rs300 million. The remaining amount will be invested by March.”
Infotech is in the process of setting up three special economic zones with a capacity for 2,000 people, a company statement said.
Reddy said he is confident Infotech will be able to achieve sales target of 9 billion and add a workforce of about 1,500. It had 7,000 employees in the year ended March 2008.
“As of now, I do not see any significant effect of US slowdown on order inflow,” Reddy said.
It currently has an order backlog of Rs7-8 billion to be executed over next two years, he said.
For the year to March 2008, the company posted a consolidated net profit of Rs855.7 million rupees on revenues of Rs6.7 billion.