Infotech eyes buys in aerospace sector

Infotech Enterprises Limited, a Hyderabad-based provider of engineering design, geospatial information and IT services, is planning to close 'two good-sized acquisitions' in the aerospace domain in the next six months, said company's senior vice-president (engineering), Krishna Bodanapu.

"We have decided to significantly build on where we are good at – the aerospace vertical.

"Accordingly, we have restarted the process of identifying companies. We are realistically looking at two acquisitions with each deal being anywhere between $30 million (Rs 147 crore) and $50 million (Rs 245 crore)," he told mediapersons here on Monday.

Infotech is targeting firms that have the right set of skills and nearness to customers in the US, besides looking at companies that will help increase its competency in terms of delivery in China, Romania, India and Russia in the areas of geographic information systems and engineering within the design space.

The company proposes to fund the acquisitions from the $75 million (Rs 367.5 crore) it had raised in 2007 through private placement of 15 per cent of its equity stake. "We have also been accruing cash ($10 million in the first quarter of FY09)," he said.

"The proposed acquisitions are expected to strengthen our aerospace vertical, which sees an annual spend of about $90 billion globally," he said.