Mumbai, Jan 25: Cityman Clothings India Ltd, promoters of Cityman brand of apparels, is on an acquisition spree in India and the US. The Bangalore-based company has picked up a 70 per cent equity stake in Mediscription Inc of the US for $800,000. The agreement was signed between Cityman Group chairman Santhosh Kariamattom and Mediscription Inc chief operating officer Mat O Matthews. The group is planning to fund the acquisition and other projects through a combination of internal accruals and debt from banks and financial institutions.Cityman Clothings has also acquired a 90 per cent equity stake in Meridian Information Technologies, a leading Bangalore-based medical transcription company through a stock swap. The Cityman group is planning to merge the mediscription arm with itself as part of its foray into the infotech field, Kariamattom said.
``The alliance with Mediscription will serve as a conduit for enhanced exposure to US customers for its infotech-enabled services. Following the acquisition, Cityman is planning to invest about Rs 30 crore in a phased manner in the expansion of its infotech business,'' Kariamattom added. ``The company is looking at a target of $5 million during the year and the partnership with the Cityman group will help us achieve a revenue of $15 million by next year,'' Mediscription COO Mat O Matthews said.
Explaining the rationale behind the takeover of Meridian Information, Kariamattom said: ``Our intent is to initially acquire substantial interest in Meridian, make it a subsidiary and then formally merge it with Cityman under a single umbrella.''
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