California Software Sells Stake In US Unit

California Software Company Ltd (CalSoft) has sold its subsidiary Informed Decision Corporation (IDC) to Higher One, a US-based financial services and payment company, it said in its filing to the BSE.

Higher One has acquired CalSoft's entire 51% stake in IDC. The total size of the deal for a 100% stake stands at $36 million (~ Rs 180 crore), which includes the value of the sale, anticipated earn out and service revenue.

The stock price of the firm jumped by nearly 5% to Rs 33.85 on Friday. The Chennai-based software developer reported revenues of Rs 258 crore with a net loss of Rs 20 crore for FY09.

“We plan to deploy the return from this sale to make similar investments.” said Sam Santosh, Managing Director and CEO of Calsoft.