Mastek mulling acquisition in US or United Kingdom in early FY17

MUMBAI: Small-sized information technology firm Mastek is looking to acquire an established company in the digital space having a revenue of up to 20 million pounds in early 2016-17, a senior official has said.

"We are looking at some opportunities of inorganic growth...it will not happen this fiscal, but early into the next fiscal, we shall be doing it," the company's Senior Vice President for Finance Anant Thakrar told PTI.

He said unlike its peers, the company is not looking at acquiring a startup, but would go for an established player in the digital space.

The target company can be either in the US, where it entered only this fiscal by incorporating a company locally, or in its traditional market of United Kingdom, he said.

Thakrar declined to give any indication on the value of the acquisition, but said it would be having annual revenues of GBP 10-20 million.

The company's cash and equivalents had stood at Rs 110.3 crore as of December 31, down from Rs 130 crore in the year ago period.

It can be noted that Mastek had acquired agile programme management company IndigoBlue in May last year and Thakrar said even the new acquisition will be similar, where it went for an established company.

The company reported a post tax net of Rs 80 lakh for the December quarter as against Rs 2.7 crore in the preceding September quarter.