California Software Co Ltd , a Chennai-based software services firm, is close to buying a UK-based firm for $60 million, said sources familiar with the development.
Through the buyout, the company hopes to strengthen its business in Oracle-based business software system integration.
US-based Oracle is a major provider of software for creation of databases and automation of various business processes in an organisation.
With a workforce of 300, the target company has competency in deployment of Oracle-based business software that enterprises use to streamline and automate various processes. It also has expertise in deploying Microsoft business solutions.
The source said that Calsoft is looking at various options to fund the acquisition. “There are plans to raise loans from some of the banks as well as from the major promoter, Singapore-based Kemoil Ltd,” the source said.
In FY08, Calsoft’s revenues from its Oracle business were $25 million. Outsourced product development fetched $34 million. Since 2004, it has seen a four-fold jump in revenues as its customers prefer outsourcing product development to cut costs.
Calsoft had earlier invested in two US firms —Informed Decisions Corp and American Healthnet —as also in Tokyo-based Codex Co Ltd.
Source: DNA India