Search News

THE Chennai-based Kaashyap Technologies (KTL), formerly Kaashyap Radiant Systems, has acquired the consultancy division of the New Jersey-based Logistics Solutions for $8.5 million in an all-cash deal.

The move is in line with its new strategy to give a thrust to its operations. While it was initially providing high-end education courses like Java and Corba, besides e-commerce, it would now offer SAP services, consulting and high-end training, KTL officials said.

“Since 1997, when it was incorporated, KTL was doing extremely well focusing on educational segment. However, after the 9/11 epi-sode, the company found itself with very less work. The acquisition of the consultancy division of Logistics Solutions is a first step towards providing a new thrust,” Mr. A Venkatramani, chairman, KTL told a press conference.

Logistics Solutions is said to serve a wide range of clients across sectors and clocked a turnover of $13.5 million in the calendar year 2006. “Typically, about 60% of such a company’s revenues come from the consulting division. And that’s why we have first acquired it,” Mr. Venkatramani said.

KTL, he said, has raised $8.5 million through a GDR issue to fund the acquisition and initially $2 million has been paid in advance. KTL will be raising an additional $8.5 million through another GDR issues, besides hoping to raise Rs 50 crore through a rights cum public issue here in the domestic market.

Following the 9/11 disaster, KTL found it hard to sustain the opera-tions and to retain the employees. “Hence, it went into red. While we have written off around Rs 120 crore over the past few years, KTL clocked a turnover of Rs 2.2 crore in 2006-07 and is now on its way to earn profits on a sustained basis,” Mr. Venkatramani said, while adding, “together with Logistics Solutions, KTL’s turnover this year will touch $20 million”.

Find Lawyer / Law Firm

Extradition Law in India

Every time an offender stealthily leaves India to take refuge in another country, the Government of India starts all over again with its strategy of bringing him back to the nation to make him stan More

Legal Consultation - Consult over phone, chat or send questions

Helplinelaw can set up your session with quality and experienced lawyers to discuss and resolve your legal matters. You can avail consultation in form of sending questions, phone call or webchat discussion  More