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Helios & Matheson acquires 3 vMoksha outfits news
Our Infotech Bureau
14 April 2005

Chennai: The Chennai-based IT services company Helios & Matheson Information Technology Limited has signed a $19-million agreement to take over three companies of the Bangalore-based vMoksha group comprising vMoksha Technologies Limited, vMoksha Technologies Inc, USA and vMoksha Technolgies Pte Ltd, Singapore. The transaction will be completed in May 2005.

"With this acquisition we would be able to strengthen our presence in Europe," said GK Muralikrishna, managing director, Helios & Matheson. vMoksha Technologies has 25 clients and is strong in healthcare and banking, financial services and insurance, while Helios & Matheson specialises in Networking, software, internet and e-business services and solutions.
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The two-part purchase price consists of $17 million in cash and $2 million based on targets achieved over a two year period. PricewaterhouseCoopers (PwC) acted as advisors to the transaction. According to the deal the three vMoksha companies will continue functioning as they are now for two years and may be merged with the Rs121-crore turnover Helios & Matheson later.

The $22-million vMoksha Technologies has 510 employees. vMoksha was founded by Pawan Kumar, former president of IBM Global Services in India. Kumar has agreed to continue as CEO post acquisition. The company's top management comprises a team that has held senior positions in TCS, IBM and Fujitsu. "The merger with Helios & Matheson is a perfect fit with our business strategy and our competencies," he says.

Explaining the sale to Helios and Matheson, Kumar explained, "Size is critical for IT services companies and with this marriage, we can rapidly expand our client base and access bigger opportunities, resulting in a win-win situation for all stakeholders."

For Helios and Matheson this is a second major acquisition within a short period. Last September the company, in a $7.5 million deal, bought two outfits — Maruthi Info Tech Inc, USA and Jayamaruthi Software Systems Private Limited, Chennai. The two companies operate in the healthcare and insurance sector.

The 14-year old Helios & Matheson, which has an uninterrupted record of profits and dividend distribution since inception, plans for an aggressive growth to $100 million revenue through strong organic growth complemented by a judicious and focused acquisition strategy. The company is also planning to attain a critical mass of 2000 employees by 2006.

 


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Helios & Matheson acquires 3 vMoksha outfits