Bangalore-based information technology solutions provider Cerebra Integrated Technologies Ltd is acquiring 51 per cent in IT products distribution firm Geeta Monitors Pvt Ltd for an undisclosed sum in an all-cash deal, the firm said on Monday.
Established in 1980, Geeta Monitors is a trading company engaged in selling of IT hardware and software solutions. Its products include personal computers, servers, storage devices, software and so on. It also provides services like annual maintenance contract, network design, third party maintenance etc.
“Our partnership with Cerebra makes sense because we share core values and complement each other’s strengths to fill some critical gaps in the marketplace,” said Ashok A Chhabria, managing director, Geeta Monitors.
Cerebra offers software, IT training and consulting, legal process outsourcing, business process outsourcing (BPO) and knowledge process outsourcing (KPO) services. The firm exports its products to South Africa, Australia and Nepal.
The decision is in line with Cerebra’s strategy of focusing its energy and financial resources in businesses where it is making a deeper impact, V Raghanathan, managing director of Cerebra, said in an e-mail statement announcing the capital fusion today.
In another disclosure, Cerebra has also said that it is raising Rs 11 crore ($2.4 million) through fresh preferential allotment of equity shares to unnamed strategic investors. It is also converting warrants issued earlier into shares in a deal worth Rs 4.7 crore ($1.4 million). As per the norms, warrant holders need to bring in a quarter of the money upfront at the time of the issue of warrants and the balance at the time of conversion. So, the firm will be receiving around Rs 3.6 crore from its warrant holders.
Cerebra has been expanding its service offering through acquisition in joint venture. Recently, Singapore-based Scenic Overseas Pte Ltd, Leytron Technology Pte Ltd and Cimelia Resource Recovery Pte Ltd invested $3.42 million in Cerebra. Cerebra has partnered with Cimelia Resource Recovery to set up e-waste recycling unit in Peenya, Bangalore.
IT sector in India has increasingly been witnessing similar kind of deals from the last couple of months. Recently, Acropetal Technologies Ltd acquired Bangalore-based IT services company MindRiver Information Technologies Pvt Ltd for $2 million and 51 per cent stake in Kinfotech Pvt Ltd for $1.1 million.
Also, GlobalLogic Inc. acquired Hyderabad-based Rofous Software Pvt Ltd for an undisclosed amount. KPIT Cummins Infosystems Ltd acquired 50 per cent stake in Mumbai based Systime Global Solutions Pvt Ltd for a total consideration of $22.77 million. Ricoh India Ltd acquired Noida-based Momentum Infocare Pvt Ltd for an undisclosed amount.
Leave Your Comment