Small size software testing firm Thinksoft Global Services Ltd on Tuesday said it is looking to buy companies within the range of Rs 15-30 crore(~$ 3.3-6.6 million) during the current financial year. The Chennai-based firm will finance the deal(s) with its internal cash accruals.
The company did not give a low down on the geographies of the target firm it has zeroed in for the deal but earlier media reports have suggested the firm is eyeing acquisitions in India and the US.
Thinksoft had floated its maiden public offer around two years ago and planned to use the money for setting up a new software testing centre besides providing a liquidity event for some of its investors. One of its largest shareholders Euro Indo Investments had sold the bulk of its holdings in its offer of sale during the IPO.
The firm is engaged in software testing services to the Banking, Financial Services and Insurance (BFSI) segment and has an employee base of around 700 people.
Thinksoft had net sales of Rs 83 crore with net profit of Rs 1.8 crore for the year ended March 31, 2011. The firm’s topline growth was flat compared to the previous year while net profit slipped 78 per cent.
The poor financial performance is attributed to the financial crisis in the West that affected demand for software products from banks and other financial institutions, the worst hit in the turmoil.
The company’s share price slipped 0.19 per cent to close at Rs 51.85 a share on Tuesday, valuing the firm at Rs 52 crore (~$ 11.5 million) at the Bombay Stock Exchange.