IT Firm Omnitech Eyes Acquisition in Europe with Revenue of $20-25 Million
Monday, 22 August 2011, 15:31 IST   |    1 Comments
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NEW DELHI: IT company Omnitech has said it is looking to acquire an IT firm in Europe with revenue of $20-25 million to expand global footprint and strengthen expertise in a industry vertical. "Europe is going through a bad economic patch. Lot of firms there are focusing on cost reduction. There is a good opportunity for us to expand our footprint there. We are looking for an acquisition in either Germany or the Nordic region," Atul Hemani, Managing Director and CEO, Omnitech InfoSolutions, told PTI. Hemani said Omnitech is evaluating companies with revenue between USD 20 million and 25 million and expertise in a particular industry vertical, probably in BFSI or healthcare sector. "The deal size is expected to be 0.6 to 0.8 times of the top line revenue of the target company which should be around Rs 60 to 80 crore," he said. The company will pay up to five times of EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortisation) margin initially to acquire the company and rest of the payment will be made over period of two to three years time, Hemani said. "We will fund this acquisition mostly from internal resources and partly from debt," Hemani said. Omnitech acquired European IT firm Avensus Netherland for USD 9 million in February. Shares of the company closed at Rs 126.95 on Friday, down by 4.26 per cent over the previous close on the BSE.
Source: PTI