To facilitate the acquisition, SIL has convened the extraordinary general meeting of its shareholder on February 14, seeking their approval on the subject. The proposal is to acquire the company by cash and stock deal, sources said.

SoftSol Resources, a California based company engaged in software development in the US, is entitled to receive contracts for IT services from the federal government and state governments in the US, on a preferential basis. Further, the company has obtained approved vendor status and preferred vendor status, with major Fortune 500 companies. The acquisition, will enable the Indian company to have access to those benefits, said the company sources.

As per the valuation report prepared by Deloitte Haskins & Sells, Mumbai, it works out to be about $31.87 million, and the SoftSol Resources' shareholders have agreed to a cash and stock deal. Accordingly, SIL will issue 53,31,430 equity shares of Rs 10 each, at a premium of Rs 95 per share on preferential allotment basis and pay $30,08,322.

Besides it will also issue a note for $30,00,000 payable within three years, said the company sources. To partly finance the acquisition, SIL proposes to launch an equity issue, while a portion of the amount will be met through internal accruals, said the sources. With this acquisition, the promoter's holding in the company will be reduced from the existing 74.55 percent to 54.12 percent, even the public holding will also be reduced from 25.45 percent to 18.48 percent. However, it will have new shareholders Longbridge Ltd of Mauritius with 26.68 percent, according to the company sources.