Infotech Enter plans $30 mn M&A splash

NEW DELHI: Hyderabad-based IT services firm Infotech Enterprises plans to acquire three companies, which is likely to be in hi-tech and automotive engineering services, this fiscal in the range of $20-30 million each. The company is currently involved in due diligence of a European auto engineering company that it hopes to acquire by December-end.

���We see large opportunities in hi-tech and auto engineering. These are areas where the company has not been very strong so far. We have about Rs 300 crore in cash set aside for acquisitions,��� Infotech Enterprises founder and CMD BVR Mohan Reddy said.

The company, which provides geographic information and engineering services, recently acquired California-based design service provider, Time To Market.

Infotech Enterprises is also looking at ramping up its domestic presence. Currently, about 97% of its revenues come from exports. ���The Indian market is opening up. We expect more action in the engineering services space, especially in the defence sector,��� Mr Reddy said.

Dassault, Boeing and EADS, which are its existing clients, have agreed to give it more work once they start manufacturing in India to fulfil the offset clause. The clause mandates that companies supplying equipment to the defence ministry must necessarily source 30-50% of it from India.

Infotech is also looking at ways to grow its presence in geospatial services. Its subsidiary, Infotech Geospatial India, is bidding for geospatial contracts in the domestic market, including those of state governments. The company opened a new facility in Noida, which is its fourth in India, on Monday that can house up to 1,000 associates.

It is also investing in another facility in Noida, which will come up in an SEZ in the next six months. Infotech expects to close the current fiscal with revenues of about Rs 900 crore. It has some 7,700 employees.