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.
The shares of the company were traded at Rs 21.45, down by Rs 0.35 or 1.61% at closing hours in the Bombay Stock Exchange.