HYDERABAD: Infotech Enterprises America Inc., the wholly-owned subsidiary of Infotech Enterprises Ltd., on Monday, said it acquired Illinois-based Daxcon Engineering Inc in an allcash deal for an undisclosed sum.
The company, which also announced the third quarter results, said it signed a long-term, multi-year engineering sevices contract Hamilton Sundstrand Corporation recently.
“We acquired all outstanding shares of Daxcon, which is cashpositive.
It will start contributing about Rs 14 crore - Rs 15 crore to our revenues from this quarter (fourth quarter of fiscal 2010),” said B V R Mohan Reddy, Chairman & Managing Director, Infotech .
He added that the company will continue to explore inorganic growth options in the engineering space to further strengthen its domain expertise besides augmenting its customer base and georgraphic presence.
Daxcon, which clocked $21 million revenues during calender year 2008, however, reported a decline in 2009, thanks to the economic recession.
The company’s current revenue run rate is about $13.5-$14 million.
As part of the regular expansion drive, Infotech said it will add 500 people during this quarter. With a number of deals in the pipeline, the company is anticipating to resume back to double digit growth in 2010.
Currently, Infotech has more than 7,200 employees with 800 employed outside India. Over 95 per cent of the revenues come from the US.
Meanwhile, Infotech Enterprises Ltd., said it posted operating profit of Rs 51.7 crore for the quarter ending December 2009. The company registered revenues of Rs 239 crore, a 0.7 per cent increase over the previous quarter. The PAT was Rs 37.9 crore, while operating margins for the third quarter of the current financial year increased 21.6 per cent over the previous quarter.