Infotech Enterprises to buy European auto engineering services firm

Noida, Sep 22 (UNI) Software services firm Infotech Enterprises Ltd today said it will acquire a European auto engineering services firm to strengthen its presence as an end-to-end service provider.

''The deal size is expected to be 30-40 million dollars and will be completed by December-end. We have already signed the Letter of Intent (LoI),'' Infotech Enterprises Ltd CMD BVR Mohan Reddy told reporters here.

The company, which gets three per cent of its revenues from the country, is based in Hyderabad and has facilities in Kakinada in Maharashtra, Bangalore and Noida.

The company is also looking at acquiring consumer and medical electronics services firms to strengthen its portfolio and develop newer areas of offerings.

The company will fund these acquisitions through the Rs 300 crore fund raised in July last year, diluting close to 15 per cent equity.

General Atlantic bought 13 per cent stake, while Mauritius-based Carrier International bought two per cent stake.

The company has also acquired California-based semiconductor design firm Time To Market for an undisclosed amount through its wholly-owned arm Infotech Enterprises America.

The acquisition is expected to be closed by September 30 and would enable Infotech to foray into the lucrative hi-tech markets to cater to various segments, including semi-conductor, computing, telecom and industrial automation.

The California-based company is mainly focused on backend physical design within chip design for semi-conductor makers and has around 120 employees in its facilities in Hyderabad, Bangalore and the US.

The company has witnessed a year-on-year growth of 40 per cent in dollar terms.

UNI SR MP RAI1851