Last leg of discussions underway with the foreign company, says Chairman
Reuters
Hyderabad: Infotech Enterprises is close to acquiring a foreign company for about $20 million in the next few months.
It has signed a letter of intent to acquire the firm and the last leg of discussions is under way.
“We have considered about 100 deals. Of these, 42 were filtered for further talks and finally zeroed in on one company. We found most of them did not match our requirements,” B.V.R. Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, told Business Line.
“It is going to be a cross-border transaction. The deal is progressing well. There were some issues in due diligence,” he said, refusing to elaborate on the nature of work the target company was involved in.
After posting highest ever revenue in a single quarter last month, the company announced an interim dividend of 40 per cent. Its net profit, highest in a quarter for the company, went up to Rs 72.5 crore in the quarter from Rs 50 crore in the same quarter last year, a growth of 44 per cent. The company, which employed 11,539 at the end of September 30, 2013, would add 2,500 for the year. After factoring in the attrition, the net addition would be 1,200 for the financial year.
By the end of six months, it records gross additions of 1,195 and net addition of 724.
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