Chennai-based IT services company Saksoft Ltd will acquire the 24% stake it does not already own in Noida-headquartered software testing services firm 360Logica, which is operated by Threesixty Logica Testing Pvt. Ltd, for Rs 7 crore (around $1 million).
"The cost of acquiring is up to an amount not exceeding Rs 7 crore plus the proportionate share of net current assets to be paid within 60 days of closing," Saksoft said in a stock market disclosure.
Total paid up capital of 360Logica is Rs 1 lakh consisting of 10,000 equity shares of Rs 10 each, it said.
Currently, Saksoft holds 7,600 equity shares or a 76% stake in 360Logica. Once the remaining 24% is acquired, 360Logica will become Saksoft’s wholly owned subsidiary, it said.
Last year, Saksoft increased its stake in 360Logica to 76% from 51% for Rs 8 crore ($1.2 million).
The demand for independent testing services is growing in the SMAC (social, mobile, analytics and cloud) and e-commerce environment, and the acquisition of stake in 360Logica is part of a plan to enlarge Saksoft's footprint in the testing domain, it said.
360Logica posted revenues of Rs 32.10 crore in FY2016-17 compared with Rs 29.68 crore in FY2015-16. Its net profit stood at Rs 5.8 crore FY2016-17 compared with Rs 6 crore in the previous year.
The company offers software testing solutions to small- and medium-sized firms. It was founded in October 2009 by Asad Khan and Rohit Singh, who both previously worked with US-based digital product engineering services firm GlobalLogic.
Saksoft was founded in 1994. It offers technology solutions in areas including information management, web development and business application testing. It caters to financial services, telecom and public-sector clients.
It has offices in the UK, the US, Germany and Singapore.
In January 2013, Saksoft acquired US-based business intelligence and information management company Electronic Data Professionals Inc for an undisclosed amount.