Infotech Enterprises announced that its wholly-owned subsidiary, Infotech Enterprises America has signed a definitive agreement to acquire IT service management and service company Softential, Inc in an all cash deal. The buyout will allow Infotech to provide better services to its telecom clients and add to its margins.
Speaking to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy about the acquired company, Krishna Bodanapu, President & COO, Infotech said Softential’s 2013 revenue stands at USD 17-18 million. The price paid for the buyout includes 1.1 times of its 2013 revenue plus another performance-based payout component based on EBITDA over the 12 months. The company has USD 110 million in cash and part of it will be used to fund the acquisition, Bodanapu said.