Aztec Software To Acquire Disha Technologies For $12.1 Million

Bangalore | Updated: Sep 21 2004, 05:30am hrs
Aztec Software, which offers services to software product companies, on Monday announced an agreement to acquire the Pune-based Disha Technologies, a software product testing company for $12.1 million, subject to the approval of the shareholders.

The deal comprises payout of $9.6 million in cash and $2.5 million in stocks.

Aztec, which made revenues of Rs 41.6 crore last year, has chosen expansion of its service portfolio as a way to grow, said managing director V Chandrasekharan.

Calling it an economcially driven move, Mr Chandrasekharan said that some Aztec customers were demanding independent testing services in addition to other software product development lifecycle services. Moreover, customers preferred to deal with one vendor rather than multiple vendors, he said. Both Aztec and Disha are vendors to Mcirosoft. While this was an acquisition to expand services portfolio, Aztec is open to other acquisitions too, he said.

Acquistion for technology expansion makes more sense than customer acquisition, he said, adding that it is too early to talk about it now.

Disha currently has 400 employees and the entire team will continue to work as an independent subsidiary and to market services under the Disha brand name even after the acquisition, said Disha CEO Samir Bodas. The acquisition will give Disha the support of a big company and at the same time the independence to grow the way it had envisaged.

Disha has around 15 customers, including ISV (Independent Software Vendors) such as HP and Microsoft.

Testing - checking for loopholes in a software product and making sure it works - is an area that is growing in importance as the focus on quality increases, Mr Chandrasekharan said.