Date:18/12/2007 URL: http://www.thehindu.com/2007/12/18/stories/2007121855931600.htm

Business

Calsoft to take stake in Inatech Info

Staff Correspondent

The consideration, in the cash and stock deal, is valued at $6.17 million

— PHOTO: BIJOY GHOSH

ENHANCING VALUE: S. Santhosh (left), Managing Director and CEO, Calsoft, with Vedante Srihari, Managing Director and co-founder, Inatech, at a press conference in Chennai on Monday.

CHENNAI: California Software Co. Ltd., (Calsoft), has announced the signing of a memorandum of understanding (MoU) for acquiring 49 per cent stake in Inatech Infosolutions India (Inatech).

The consideration for the acquisition is valued at about $6.17 million and will be paid through a combination of cash and stock, subject to regulatory approvals as applicable.

Earlier, in November 2006, Calsoft had signed a letter of intent (LOI) to acquire majority equity stake of Inatech Solutions U.K. and Inatech InfoSolutions India.

Calsoft had taken 51 per cent majority interest in Inatech, a specialised end-to-end Oracle solutions provider in the enterprise space.

As part of the agreement, Calsoft was to originally acquire the balance in November 2009.

Addressing a press conference here on Monday, S. (Sam) Santhosh, Managing Director and Chief Executive Officer, said the 49 per cent stake was to be bought over in the ratio of 48 per cent in cash and 52 per cent in stock.

Vedante Srihari, Managing Director and Co-founder, Inatech Solutions, said his company was focussing on construction, hi-tech manufacturing, distribution and the government sector.