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Helios & Matheson completes acquisition of vMoksha news
Our Infotech Bureau
12 May 2005

Chennai: Chennai-based Helios & Matheson Information Technology Ltd (FY 2005 revenue of Rs122.12 crore) announced today having completed its acquisition of all three vMoksha group of companies — vMoksha Technologies Inc, USA, vMoksha Technologies Pte Limited, Singapore and vMoksha Technologies Private Limited, Bangalore. (See: )

Earlier in September last year, Helios & Matheson had bought two IT outfits — the US-based Maruthi Info Tech Inc., and Jayamaruthi Software Systems Private Limited based in Chennai. "The acquisition of the three vMoksha companies is complete and we are working towards a seamless integration," said V Ramachandiran, chairman, Helios & Matheson. "By this transaction, we are investing cash — $19 million dollars, and therefore it is a big statement about our commitment and seriousness to build scale, capabilities and international presence."

The 'share purchase agreement' was signed today by Helios & Matheson and vMoksha's officials after the completion of all procedural formalities. The all-cash deal was closed at $19 million and includes earn-out for achieving targeted financial milestones over a two-year period.

The 14-year old Helios & Matheson Information Technology Ltd, has its corporate headquarters in Chennai, and subsidiaries and offices in the US, Singapore and Bangalore. It provides a comprehensive range of services that spans the entire software services lifecycle, from application development and integration to application life cycle management.

The SEI-CMMi Level 5 and BS 7799-certified. vMoksha is an IT outsourcing company headquartered in Bangalore, India. Founded in May 2001, the company has operations in US, Canada, Europe and Asia Pacific with offices in San Jose, New Jersey, London and development centers in Bangalore, Pune (both in India) and Singapore.

Helios & Matheson had earlier signed an agreement in April 2005 with vMoksha to acquire all the three companies. With the completion of the acquisition, all three vMoksha entities now become wholly owned subsidiaries of Helios & Matheson. Pawan Kumar, founder of vMoksha and former head of IBM in India, will continue as CEO post acquisition.

Explaining the company's post-merger plans, G K Muralikrishna, managing director, Helios & Matheson, said, "We are looking at an aggressive growth to $100-million revenue in the next 24 months and at attaining a critical mass of 2,000 employees by 2006. We plan to enhance our international competitive position through both organic growth and strategic acquisitions. With the completion of the vMoksha deal, we are well positioned to achieve our strategic goals."

On FY 2005 revenues of Rs 122.12 crore, Helios & Matheson had posted a net profit of Rs.18.57 crore in the year ended March 31, 2005, up 133 per cent over Rs7.96 crore in the previous year. Earnings per share increased to Rs18.56 on an expanded capital base (post 1:1 bonus issue) as compared to Rs15.91 for the previous year. (See: )

 

also see : Helios & Matheson acquires 3 vMoksha outfits
Helios and Matheson closes year with Rs18.57 crore profit

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Helios & Matheson completes acquisition of vMoksha