SST busy Prolifics for $40mn

Hyderabad, July 2 (UNI) SemanticSpace Technologies (SST), a privately-held software company, today announced its acquisition of 100 per cent of Prolifics, a US-based systems integrator specialising in IBM technologies, for 40 million US Dollar in an all-cash deal.

The deal is with an upfront payment of 26 million USD and the balance in earn-outs over two years.

The company raised 16 million USD internally and secured another 16 to 17 million USD loan to fund the acquisition.

Together Prolifics, SemanticSpace Technologies and Arsin Corporation will operate as SemanticSpace Group creating a new overall organization of 1500 employees with more than 100 million USD in revenue on a proforma basis.

''We are particularly excited to bring Prolifics into the team,'' SemanticSpace Technologies CEO Satya Bolli said.

The SST, which posted 27 million USD turnover in 2007-2008 has targeted 40 million USD in current financial year.

Together with Prolific, SST was looking at 100 million USD revenue this year. It also plans to increase by 500 the headcount to 2,000 by the year end.

''We expect both the companies to fully integrate over the next 24 months,'' Mr Bolli added.

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