Riding on increasing global demand for its anti-money laundering software, banking software solutions provider Infrasofttech is planning to expand its American operations by acquiring a US-based company for a consideration of $7 million in two months.
"We have shortlisted three prospective companies for this deal for which talks are on... we hope to acquire one of them within the next 60 days," Infrasofttech managing director Hanuman Tripathi told PTI in Mumbai on Wednesday.
The company is looking at this acquisition to strengthen its position in the US market, Tripathi said. The company will hire around 50 to 70 more employees and add five to seven banks to its customer base.
Mumbai-based InfrasoftTech has presence in Europe, Middle East as well as East Asia.
The company presently has around 55-60 per cent of its revenues from UK operations and aims to earn around 25 per cent revenues from US within the next two years.
InfrasoftTech also plans to increase its turnover from the present level of $16 million to $32 million in 2007 and $50 million by 2008, once its US operations begin in full swing.
InfrasoftTech expects to leverage on its anti money laundering software to realise its turnover target.
The software helps banks search and scan through customers' profile and transactions across their enterprise and reports suspicious activities effectively.
AML worldwide is estimated to be worth a few trillion dollars per year and is considered to be third largest business. In India, Reserve Bank of India has asked banks to instal AML software by June, 2006.
The company is also coming up with a new development centre in Mumbai with an investment of $4 million.
The centre will be spread over an area of 40,000 square feet and used to strengthen the company's research and development activities, which need to be updated on a regular basis, Tripathi said.
Asked whether InfrasoftTech plans to enter the capital market, Tripathi said the company does have such plans but declined to disclose any timeframe.
"We definitely have plans in this regard. However, presently I don't see any chance of it," Tripathi said.
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