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The merger of Applabs Technologies, a specialist in testing, development and certification solutions; eSolutions, an enterprise solutions provider in the areas of supply chain management and retail and VisualSoft Technogies, a software solution provider operating in the areas of outsourcing product development and advanced technology solutions which is on stock swap basis, subject to regulatory approvals from the Indian stock exchanges and the Andhra Pradesh and Tamil Nadu High courts. This is likely to take 3 to 5 months.
The board of directors of VisualSoft had accepted the merger in principle last night. The merger will create a global powerhouse delivering services in the software testing and product development markets.
The combined company will have over 1,800 employees serving more than 400 active customers globally.
Sashi Reddi, currently the CEO of AppLabs, has been appointed the CEO of VisualSoft Technologies Limited (the surviving corporation).
Reddi, a seasoned entrepreneur with a track record of building successful companies, was pivotal to facilitating the merger and he would take over CEO from November 1.
With their combined resources and complementary services, the new company will have the infrastructure and reach to scale and serve a much larger global market.
Reddi along with VisualSoft M D Sudhakar R Gunturu, CFO V Krishnan and eSolutions CEO Suresh Ramani said that they were in talks for last three months on the merger.
A scheme of amalgamation and valuation is expected over a next 15 days with the task assigned to a legal council and a charted accountant.
The total revenue of the three companies was $70 million. It is likely to go up to $100 million, next year, they said.