The agreement will culminate into a definitive share purchase agreement, subject to standard closing conditions, necessary approvals and completion of all formalities. The entire process is expected to be completed by 31 December 2007.

International Innovations Inc. (Innovations) is a technology consulting firm specializing in information management solutions. It delivers business intelligence tools, analytics, business rules management, and enterprise search capabilities that help clients improve their decision making processes across all business functions.

Innovations serves clients in diverse sectors such as mortgage banking and financial services, high technology, manufacturing, travel and transportation, and telecommunications. IT counts Cisco Systems, Charles Schwab, Washington Mutual Inc., APL, and Wells Fargo, among others, as its clients.

Innovations also has an alliance network and partnerships with leading software and hardware vendors including Siebel, iLog (for the year 2006, Innovations was voted the best partner by iLog) and Aduna.

Innovations is expected to add $2.3 million with $300,000 profit after tax to the consolidated revenues and profit of Calsoft in the next 12 months. "Innovations brings its expertise and presence in the Information Management market in the USA, to Calsoft''''s enterprise offerings and capabilities, a key focus area for the company. This will further enhance our value offering globally", said S (Sam) Santhosh, managing director and CEO, Calsoft.

Piyush Govil, founder and CEO of Innovations said, "Calsoft''''s strategic equity stake will further enhance Innovations'''' capabilities and global reach. Joining the Calsoft Group will allow us to serve our clients even better by offering them greater choice and the support of a ''''glocal'''' (global and local) team".

Innovations'''' valuation will be capped at maximum of $1.32 million (approximately Rs53 million). The deal envisages phased payments by Calsoft over a period of one year from the conclusion of a definitive share purchase agreement and based on certain performance parameters.

Calsoft plans to continue its dual growth strategy through the organic route combined with prudent and focused acquisition that bring synergies to its customer offerings. The acquiring firm posted consolidated revenues of $36 million (Rs169 crore) in the year ended 31 March 2007 and achieved consolidated revenues of $28million (Rs114 crore) in the first half-year ended September 2007 of the current fiscal year.

CMMi Level 5 California Software Company Ltd (Calsoft) is a public limited company in India, listed on the NSE and BSE, with a global presence. Founded in 1992, Calsoft group including subsidiaries currently employs over 1000 professionals. The group has development centres in Chennai, Bangalore and Mysore in India and Pleasanton, (California), Alameda (California), Boston (MA) in the US, with group marketing offices in the US, UK, Singapore, Japan, Dubai, Hong Kong, Copenhagen and in India.