California Software accelerates buy out of Inatech - Strengthens its Oracle practice

California Software Company Ltd on December 17, 2007 has announced that the signing of a Memorandum of Understanding (MOU) for acquisition of the minority shareholding of 49% in Inatech Infosolutions, India (Inatech). The consideration for the acquisition of this part is valued at approximately USD 6.17 Million and will be paid through a combination of cash & stocks, subject to due regulatory approvals as applicable.

Earlier in November 2006, the Company had taken 51% majority interest in Inatech, a specialized end-to-end Oracle solutions provider in the enterprise space. As part of the agreement, the Company was to originally acquire the balance in November 2009.

Mr. S.(Sam) Santhosh, Managing Director & CEO, of the Company, said, "Inatech's good performance, their management team and European presence have encouraged us to accelerate the buy out. We expect this transaction to be accretive to Calsoft's earnings. Given the size of our organization and the complementary nature of our businesses, we should recognize substantial revenue synergies and significant economies of scale."

Inatech has posted consolidated revenues of Rs 30.54 crores (US$ 7.5million) and with profits after tax of Rs 3.6 crores (US$0.9 million) for the half ended September 30, 2007.