DMC International Ltd, a New Delhi-based company, is acquiring Vsoft Services Pvt Ltd for around Rs 1.5 crore. Vsoft Services is a 14-year old software developing firm in Mumbai, and is engaged in the development of Indian bilingual software.
DMC International has entered into an agreement with the shareholders of the Vsoft Services for the buy, and plans to pay the acquisition through preferential allotment of equity shares. The decision is subject to the approval of the Securities and Exchange Board of India (SEBI), it informed the Bombay Stock Exchange.
DMC board will meet on 2010 to decide on the funding plan through preferential allotment of shares. It has also nominated Bharat Gupta and Atul Garg on the board of directors in Vsoft.
Our previous story on March 16:
DMC International Ltd, a New Delhi-based company, is acquiring Vsoft Services Pvt Ltd, a software developing firm in Mumbai, for an undisclosed sum. The company plans to fund the acquisition through cash and equity, it said in its filing to the Bombay Stock Exchange.
DMC, which is basically a real estate firm, is diversifying its business. It earlier acquired a test preparation firm called Trump & Gates in October last year. DMC has already received board approval for the acquisition. It, however, did not disclose further on the timeline to close the deal. The acquisition is subject to necessary statutory formalities.
DMC believes the acquisition will help it reach rural and semi rural populations of India with the government's mission for compulsory elementary education under Sarwa Shiksha Abhiyan. The software will help in providing education content of technical and higher education in regional languages.
Vsoft manufactures bilingual software which are used in decoding instructions in regional languages. It has clients in banking, insurance and other corporate sectors that include the Reserve bank of India, Life Insurance Corporation of India, Oil and Natural Gas Corporation and Bharat Sanchar Nigam Ltd.