IL&FS Private Equity-backed IT solutions firm GSS America, that raised around $10 million early this year, is acquiring US-based firms in the IT infrastructure management space. Although it did not share details of the firms it is looking out for and what could be possible deal value, it said in a regulatory filing that its target companies have revenues of over $30 million.
The company said, these acquisitions would add to its portfolio of cloud computing and virtualization. This will also help the firm in cross-selling and will add to the top-line in absolute terms, it said.
GSS America, that raised around Rs 140 crore through a public float three years ago, had utilised little over half of the IPO money as of December 2009. The company had in January also taken board approval to raise as much as $75 million through various routes for funding acquisitions.
The stock has risen 2.5% in early morning trade after the company disclosed its last quarter results and plans for inorganic expansion. Although the scrip is much below its 52-week-high of Rs 500 at Rs 388, the institutional investors who invested in the firm few months back at Rs 326 are sitting on close to 20% unrealised gains.
Besides IL&FS PE that owns 13.12% stake in the firm, AIM-listed Kubera Cross Border Fund also owns 7% in GSS America. Early this year, media house Bennett, Coleman & Co Ltd (BCCL) had sold some shares in its two-year-investment in GSS America at a loss.
Hyderabad-based GSS, founded in 1999, provides managed IT services and operates through its offices in India, Singapore, Middle East and the USA.