The Hindu Business Line : ISG NovaSoft buys 55% stake in Irish co

Mr Krishna Kumar Srinivasan, CEO, ISG NovaSoft Technologies Ltd, and Mr Will Gessner, Vice-President of GTEL, at a press conference in Chennai on Wednesday. - - Bijoy Ghosh

Chennai , Oct. 19

ISG NovaSoft Technologies Ltd (ISGN), the Chennai-based technology company and a part of the K.K. Birla group, has acquired 55 per cent stake in GMACCM Technology Europe Ltd (GTEL), an Irish software solutions company, from GMAC Commercial Holding Corporation.

Declining to provide the deal size, Mr Krishna Kumar Srinivasan, Chief Executive Officer, ISG NovaSoft, told newspersons that the acquisition would help the company offer compliance solutions globally to large and mid-size companies, governments and educational institutions.

ISGN is likely to report revenues of $17-20 million for fiscal ending March 2006. The Irish company, which has 15 employees, on a stand-alone basis is likely to report revenues of $3 million, he said.

GTEL has developed Risk Management Compass (RMC), a technology solution that helps companies adhere to regulations such as Sarbanes Oxley (SOX) in the US and Clause 49 in India.

This fiscal ISGN would spend Rs 25 crore on infrastructure and double its workforce to around 600, he said.

Mr Will Gessner, Vice-President, GTEL, said that RMC was designed with user participation and has been successfully deployed in major companies, including GMAC Commercial and Ryanair.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page