HYDERABAD: Infotech Enterprises Ltd., an engineering design, GIS services and solutions provider, on Tuesday, said its wholly-owned subsidiary — Infotech Enterprises America Inc., — acquired US-based Wellsco Inc., in an all-cash deal.
Wellsco is a telecom engineering services provider with annual revenues of $12 million and employs over 180. While Infotech did not disclose the deal size, company officials said, it could be between $12 million.
“The telecommunications industry has always been an important market for us and telecom network design and engineering has emerged as an excellent growth area. With this acquisition, we gain access to the deep domain skills and experience of the local Wellsco team, which combined with long-term customer relationships and US delivery capability, will accelerate our growth,” said B V R Mohan Reddy, Chairman & Managing Director, Infotech Enterprises. Infotech has presence in verticlals including power utilities and telecom segments.
It identified strategic initiatives that will help the company clock $1 billion revenues. “Strengthening domain expertise in new market segments within existing industry verticals, establishing a global network of engineering centres besides getting into long-term relatoinships with customers,” said the company in a release.
Earlier this year, Reddy said, the company was under shareholder pressure and was aggressively scouting for value-based acquisitions. In 2008, Infotech raised about Rs 300 crore for acquisitions from General Atlantic, an investment firm and is currently sitting on a cash pile of about `400 crore.
Among its recent acquisitions comes, Daxcon Engineering, a US-Based engineering services company last year. It had earlier acquired Time to Market Inc., a California-based chip desinger company, thereby making its entry into Hitech industry. Similarly, in the GIS space, it pulled off two acquisitions namely — US-based Vargis and Tele Atlas India — way back in 2004 and 2005.