Hyderabad : 

The Four Soft board has decided to sell its IT solutions business and its stake in all its foreign subsidiaries to the UK-based Kewill group for a consideration of $43.4 million.

“The transaction for the business is valued at $22.5 million and investments in the share capital of foreign subsidiaries are valued at $20.9 million, making a total deal value of $43.4 million. The deal is expected to close in 90 days, subject to statutory approval and closing processes,” the company informed the Bombay Stock Exchange on Saturday.

The Hyderabad-based company, promoted by Palem Srikanth Reddy, provides IT solutions to logistics and transportation industries.

The board, which met here on Saturday, considered the ‘slump sale’ after discussing Transport, I.T. Solutions Private Ltd (a Kewill group company) proposal to acquire the business. The proposal also included purchase of stake in the company’s foreign arms.

The promoter will adhere to a five-year non-compete and non-solicit agreement with the acquirer. Srikanth Reddy, who is also the Chairman and Managing Director, told Business Line that the company could tap opportunities in testing services, big data analytics, as also media and entertainment industries.

For the quarter ended June 30, the company registered a turnover of Rs 30 crore against Rs 32 crore in the same period last year. It made a net profit of Rs 4 crore (Rs 2.76 crore). For the full year 2012-13, the company made a net profit of Rs 11 crore on a turnover of Rs 132 crore.

source: http://www.thehindubusinessline.com / Business Line / Home> Industry> Info-Tech / by K. V. Kurmanath  kurmanath.kanchi@thehindu.co.in / Hyderabad – August 10th, 2013