Mumbai: Software services firm Infotech Enterprises Ltd has acquired 74% stake in Geospatial Integrated Solutions Pvt. Ltd for Rs29.6 million, a company official said on Tuesday.
“This acquisition expands our market coverage in terms of geospatial services and also increases our presence in India and the Middle East which is seeing higher growth,” Assistant General Manager Surya Kiran told Reuters.
The geospatial market in India and the Middle East is estimated at around Rs12 billion and growing at 12% annually. The global growth rate is between 5% to 6%, Kiran said.
Infotech expects revenues from the geospatial segment in India and the Middle East to reach Rs1 billion in the next three years. Its revenues from this segment in this region currently stand at 3% of total revenues.
The official said 96% of the company’s geospatial revenues — which make up 40% of total revenues - comes from the U.S. and Europe.
Geospatial Integrated has 65 people on its rolls and is focused on its single segment.
Infotech has reserved the right to buy the remaining 26% after three years depending on Geospatial’s performance, Kiran said.
Shares in Infotech were down 1.93% at Rs350.20 in the Mumbai market.