Omnitech Looks for US and European Acquisitions

Omnitech Infosolutions Ltd. is looking at four companies in Europe and the US for acquisitions. This is part of its plan to quadruple revenues in three years.

Two of the targets are in the US and one each in the UK and Netherlands. The US companies valued at $20 mn each and the European ones, around $15mn each. The company may acquire more than one company of the four.

The first transaction is expected to be announced in 45 days. Funding for the acquisition would be done through debt. An Indian bank has offered to fund the entire $20 mn for the first acquisition.

The two US target companies are in the infrastructure management services (IMS) and application management spaces, respectively. The Netherlands one in the IMS domain and cloud-computing while the UK company is in the disaster recovery and business continuity and IMS segments.

Transaction Reference: ET

Omnitech's core business focus areas are IMS, application managed services, business continuity services and cloud-computing. Its revenues in FY2009 were Rs. 171 crores with an EBITDA of Rs.52 crore. The company had PAT margins of 19% over the previous two years.

A lot of midsize IT companies are making acquisitions in the developed markets. Recently Glodyne acquired DecisionOne Corporation for $104 mn again in the IMS space.

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