IT consultant Valtech SA has acquired Indian software and services firm Majoris Systems Pvt. Ltd. to provide low-cost development services to its clients.
Paris, France-based Valtech paid 4.8 million euros ($5.86 million) in cash to acquire Bangalore, India-based Majoris, with the possibility of a further 3.6 million euros ($4.39 million) over the next three years. Majoris employs some 200 people and made revenue of 5 million euros ($6.1 million) in 2003.
Valtech said it will combine the operation with its existing offshore development center in India, creating a combined workforce of 300, and 18 customers based in Europe and the US. The company also plans to invest a further 1m euros ($1.22 million) in the Indian operation over the next 12 months. Majoris is certified at CMM Level 5 and ISO 9001.
The announcement follows Valtech’s move into the Indian market in May 2003, when the company acquired an 80% stake in Ivega Corp, creating a joint venture Valtech Ivega with a development center in Bangalore.
Valtech also reported its first-half results, which showed the company had moved back in to the black. During the six-month period, the company reported a profit after tax of 566,758 euros ($691,444) for the first half of 2004, after a loss of 3.05 million euros ($3.72 million) in 2003, on revenue that grew one percent to 41.2 million euros ($50.3 million). In the second half of 2004, the company expects revenue to be between 41 million euros ($50 million) and 43 milliom euros ($52.5 million).