AXIS IT&T, an engineering and software solutions provider, has acquired a 51% stake in Bangalore based-Cades Digitech for an undisclosed amount. The acquisition has been finalized & approved by the company board, AXIS IT&T said in a filing to the Bombay Stock Exchange. Business Standard reports that the transaction is valued at close to Rs 75 crore and AXIS IT&T will eventually pick up a 100% stake in the firm.
Cades, a product design and engineering services firm, has been backed by Nadathur Holdings, the investment arm of Infosys co-founder NS Raghavan. Nadathur is reported to have invested a sum of Rs 30 crore in the company and has been looking for an exit since early last year. The clients of Cades include EADS, Boeing, Fokker, Nissan, Volvo and Mercedes Benz with revenues of around Rs 50 crore.
AXIS IT&T was acquired by Rajeev Chandrasekhar-controlled Tayana Software Solutions (TSSL), a wholly-owned subsidiary of Bangalore-based Jupiter Strategic Technologies last year.
Chandrasekhar is presently an independent member of the Parliament, and was the founder of BPL Mobile in India.
AXIS IT&T reported revenues of Rs 9.8 crore for June quarter with a net loss of Rs 68 lakh. The shares of the firm were trading at Rs 46.55, up by nearly a 5% today.