IT services firm Polaris Software has said it will acquire software product company Laser Soft Infosystems for Rs 52 crore in an all-cash deal. Both the Chennai-based firms have signed a definitive agreement to the effect.
Polaris will pay Rs 35 crore in cash and the remaining amount over the next two years on performance-linked tranches. The funding of the acquisition will be through internal accruals, Polaris said.
"The acquisition will be EPS accretive for Polaris," the company said in a statement. The deal will help Polaris to deepen its presence in the financial technology space. Polaris chairman and CEO Arun Jain said, in a statement, “with this merger, we are expanding our strategic capacity by 600 banking and technology experts.” Polaris has about 9,000 employees on its rolls.
Laser Soft offers software products for core banking and specialised products like treasury, trade finance and cash management. It counts ICICI Bank, State Bank of India, ING Vysya Bank and PNB as some of its clients.
Shares of Polaris Software Lab went up over 2%, reaching Rs 151.20 on the BSE in morning trade. The shares fell to Rs 146 later in the day.
Laser Soft had raised around $1 million from IL&FS Investment Managers back in 2000, and bought back the stake in 2007.
