The Hindu Business Line : Goldstone Tech buys US company

GOLDSTONE Technologies Ltd has acquired StayTop Systems Inc, a San Jose-based provider of Oracle Consulting Services, in cash-cum-stock deal valued at about $2.1 million (around Rs 9 crore).

The Managing Director of Goldstone Technologies, Mr Chalapathi Rao, told Business Line: "In StayTop, we found the business reputation, West coast and onshore presence and bluechip clientele that would help further accelerate our onshore consulting experience."

"Our business models complement each other, giving Goldstone the ability to accelerate its growth across US, while providing superior enterprise in consulting services leveraging the offshore model. StayTop has been growing over 100 per cent for the last three years and together we expect to leverage the offshore advantage of Goldstone to offer services for US companies. Cisco and WellsFargo are among StayTop clients," he explained.

"The entire deal, including the stock payout, would take about two years," he said.

The company's board had hiked the FII holding limit and roped in foreign institutional investors' participation of about $2 million. This and other internal accruals along with stock offer would help fund the acquisition, he added.

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