CPTL to acquire 24% stake in ECS

MUMBAI: Core Projects and Technologies Ltd (CPTL) plans to acquire 24 per cent stake in Atlanta-based software solution provider, Enterprise Computing Services Inc (ECS), making the US company a 100 per cent subsidiary of the Mumbai IT firm.

During Q3 FY06, CPTL acquired a 76 per cent stake in ECS.

The acquisition of the balance 24 per cent stake of ECS will strengthen CPTL's presence in the education vertical in the US, CPT Director Achyut Godbole said here today.

ECS is a software solutions and product company focused on the education vertical.

CPTL is also planning to merge Software Technical Services Inc (STS), another Atlanta-based professional services company, which it acquired last quarter, with itself.

In Q4 FY06, CPTL acquired a 100 per cent stake in STS, which is also a preferred IT vendor to Wal-Mart.

The merger of STS with CPTL will increase the top-line of Core India by $8 mn, Godbole said.

The merged entity will offer comprehensive recruitment services from the offshore centre to US clients, enabling the US clients to reduce recruitment costs, he said.

"The synergies will lead to additional business from existing clients of both companies. And common infrastructural needs will lead to reduction in overheads and, therefore, increase in net margins," Godbole said.

Started in 2003, CPTL is an IT solutions company, with operations in India, US, UAE and Africa and is focussed in offshore development, asset management and smart card applications.