 Calsoft inks deal with Inatech
 The Chennai-headquartered California Software Co Ltd (Calsoft) has announced the signing of a letter of intent (LoI)) to acquire majority equity stake of Inatech Solutions, UK, and Inatech InfoSolutions India. The LoI will culminate into a definitive share purchase agreement, subject to standard closing conditions, necessary approvals and completion of all formalities. The entire process should be completed by October 31, 2006.
Inatech is a specialised Oracle solutions provider with a major focus in construction, hi-tech, manufacturing, distribution and the government sector. The company enjoys the highest level of Oracle partnership - Certified Advantage Partner in the EM EA region. This elite status allows it to service the full range of Oracle products worldwide. Inatech has primarily focused on the UK market and continues to work with Oracle's E-Business suite and new technologies like fusion and mobile applications.
Inatech posted consolidated revenues of $ 7.05 million (Rs 32.30 crore) and net profits of $ 0.86 million (Rs 4 crore) for the year ended April 2006. The revenues of Inatech for the current fiscal year are projected to be $ 10 million (Rs 46 crore) and profits after tax to be $ 1.1 million (Rs 5.06
crore).
S (Sam) Santhosh, managing director and CEO, Calsoft, said, "Inatech brings rich Oracle expertise in the enterprise space, especially within the UK market. Enterprise business is one of our focus areas. This will further enhance our value offering globally."
Vedante Srihari, managing director and co-founder, Inatech Solutions, added, "The rationale for entering into this agreement was to partner with a larger company with a sound track record. Calsoft's resources and strengths will only enhance our capabilities and global reach. Joining Calsoft group will allow us to service our existing clientele better."
Inatech's enterprise valuation was at Rs 30 crore. The deal envisages initial purchase of 51 per cent of Inatech shares by Calsoft through a combination of cash and stock. Spark Capital Advisors (I) Pvt Ltd, Chennai, provided the financial advisory services for this deal.
Calsoft plans to continue its dual growth strategy - organic growth combined with prudent and focused acquisition that brings synergies to its customer offerings. Calsoft posted consolidated revenues of $ 26.18 million (Rs 115.43 crore) in the year ended March 31, 2006, and achieved consolidated revenues of $ 7. 93 million (Rs 36.24 crore) in the first quarter ended June 2006 of the current fiscal year.
R Rangaraj
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