Calsoft – California Software Labs – a company that largely caters to product development and Oracle consulting, is all set to expand by acquiring two firms in the Oracle space. The company is in talks with a UK and a US firm in the Oracle consultation space.
The company will acquire a UK firm in about two weeks for $9 million that has about 40 clients in UK. It will also acquire a US-based company in the similar domain, in about two months for about $14 million. Sam Santhosh, president and CEO, Calsoft told FE, ?About one-fourth of our revenues come from Oracle consulting and so we wanted to create an Oracle ecosystem. We are acquiring these companies as they are under pressure due to the local cost and have a scalable customer base.?
He added that the acquisition would come as a combination of liquidity, stocks, and earn outs. ?Our Oracle operations contribute about $16 million of which $13.5 million comes from the UK and the rest from the US. We expect that both the companies will contribute about $10 million each to our revenues by next year,? Santhosh said.
The firm had acquired 49% minority shareholding in UK based Inatech Infosolutions, an Oracle solutions company, for Rs 25 crore in December 2007. It had already acquired 51% stake in it for Rs 15 crore in November 2006.
