Chennai-based California Software Company Ltd (CalSoft) will acquire Bangalore-based WebSpectrum Software Pvt Ltd in a deal valued at about Rs 2.2 crore (Rs 22 million).
WebSpectrum, which has a workforce of 35, has been focusing on network management systems and networking products and its customers include Nortel Networks and Symmetricom.
"The acquisition will help not only to strengthen our technology solutions division, but also to expand our operations in Bangalore. The division, which contributes substantial portion to the total revenue, will be merged with WebSpectrum, which will be spearheading the division's growth," J K Nair, the chief operating officer of CalSoft, said at a press conference in Chennai on Monday.
Rathnakumar Kayyar, the CEO of WebSpectrum, said: "We did talk to some of the product companies. But when we discussed with CalSoft, we found a perfect match in business offerings and technology solutions."
CalSoft, a listed company, is planning to expand the Bangalore facility of WebSpectrum to accommodate over 100 people by the end of 2005.
The company targets to register revenue of $10.75 million during this year compared to last year's $8.5 million. In September 2004, CalSoft acquired 51 per cent equity of Cochin-based Team Frontline, a system integrating company.
CalSoft has development centres in Chennai and Pleasanton in the US and marketing offices in the United States, the United Kingdom, Japan, Singapore and Dubai. Indian operations contribute around 70 per cent to the total revenue.
CalSoft, which employs about 450 people, including the workers of Team Frontline and WebSpectrum, has been focussing on three areas -- commodities solutions, enterprise and technology solutions.
The technology solutions division has been providing outsourced product development and network programming services.
"We have been a leader in outsourced product development and have developed over 80 products for our clients," Nair said.
Its customers include HP, Microsoft, Sony, Radisson, Johnson and Johnson and Itochu Corporation.
Targeting mainly oil companies, CalSoft's commodities solutions division offers solutions in procurement, trading and risk management. "We are a leader in providing oil supply chain management solutions," said Nair.
Its enterprise solutions division focuses on providing solutions in manufacturing, retail, healthcare, hospitality sectors. "We will be focussing on niche areas and trying to be leaders in offering solutions," Nair added.
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