IT services provider Omnitech InfoSolutions Ltd has announced that it will buy Avensus Netherlands BV, engaged in the IT infrastructure management space, for $9 million.
The company will pay an upfront sum of $4.8 million and the remaining amount as deferred payment and earn-out which shall be paid over a period of three years, the company said, in a filing to BSE.
Avensus, with a turnover of $13 million in CY09 and team strength of 45 professionals, caters to Netherlands and Luxembourg markets with Fortune 1000 companies as clients in the verticals of BFSI, healthcare and government business.
Through this acquisition, Omnitech plans to further leverage the expertise of Avensus and expand across the entire Europe over the period of next three years, the statement said.
Omnitech will get an access to over 100 existing customers of Avensus, to explore cross-selling of its services like remote infrastructure management, application management, performance management, business continuity services and domain specific services.
“With the acquisition of Avensus, Omnitech will further strengthen its presence in the European market. It will also provide the right platform for Omnitech to leverage the local strengths combined with Omnitech’s Global delivery model in services like Remote Infrastructure Management, BCP consulting and niche BFSI consulting services,” Atul Hemani, Managing Director and CEO, Omnitech InfoSolutions Ltd, said.
Following the acquisition, the company expects to add nearly $3 million to the top line by the end of current fiscal. Omnitech aims to achieve around $30 - 35 million through entire Europe with Avensus as a platform by FY 14.
"With Avensus joining Omnitech we get an excellent opportunity to spread our customer focus over Benelux and Europe. Based on the qualitatively unique shared values and team-interests of both companies we are looking forward to leveraging the Omnitech global services model,” Ed Trautig, CEO of Avensus Nederland BV, said.
The current team of Avensus will be retained and merged entity shall grow its team size to around 150 people in next three years. The total staff strength of Omnitech will reach globally to over 1,100 post acquisition.