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Business News/ Companies / Cambridge ready for more acquisitions, is evaluating 12 firms
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Cambridge ready for more acquisitions, is evaluating 12 firms

Cambridge ready for more acquisitions, is evaluating 12 firms

Go-getter: Cambridge Technology CEO Bhaskar Panigrahi.Premium

Go-getter: Cambridge Technology CEO Bhaskar Panigrahi.

Hyderabad: A small software services firm that ended 2006-07 with Rs23.6 crore in revenue and Rs5 crore in net profit, Cambridge Technology Enterprises Ltd plans to continue its strategy of acquisition-led growth, according to its chief executive officer Bhaskar Panigrahi.

Cambridge, which made an initial public offering of shares in January 2007 to raise Rs24 crore, has spent Rs39.5 crore in three acquisitions in the last nine months.

Go-getter: Cambridge Technology CEO Bhaskar Panigrahi.

And in May, it acquired Com Creation Inc., a Dallas-based company with a development centre in Bangalore, for Rs14 crore.

Panigrahi said the planned acquisitions would be larger and Cambridge was evaluating 12 companies. He declined to name the companies or comment on the number of acquisitions the company would make.

“How many companies we would end up acquiring will depend on what strengths they offer to us. Some may be dropped during due diligence, some due to valuation and some because of synergy issues," he added.

Cambridge offers IT services in areas such as banking, financial services, insurance, life sciences, manufacturing and hi-tech. It plans to expand into areas such as health care, recreation, hospitality and leisure.

“Next acquisition could even fall under the current verticals. We are considering various options for raising funds. Options include raising debt from banks and financial institutions, raising funds in the overseas market by issue of foreign currency convertible bonds and going in for a follow-on (public) issue," said Panigrahi.

The company has already obtained the approval of shareholders for a fresh issue of equity and enhanced borrowing limits.

Cambridge Technology Enterprises ended the three months to December with revenues of Rs22.3 crore and a net profit of Rs3.36 crore. The shares lost 3.35% to close at Rs66.45 each on the Bombay Stock Exchange on Wednesday, the day that saw its benchmark index losing 2.81% to end at 18,139.49 points. The shares touched a high of Rs119.90 in the last year and a low of Rs39.90.

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Published: 07 Feb 2008, 12:05 AM IST
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