Goldstone Engineering acquires software companies

BANGALORE: Hyderabad-based Goldstone Engineering Ltd. has announced that it was acquiring two US-based software companies - Prime Soft Group and Fortech Software Inc.

Commenting on the acquisitions, company sources said Primesoft Group's Professional Services business and Fortech Software's Offshore and Product development model will ensure Goldstone to penetrate crucial vertical market segments like Telecom, Insurance, finance, Utilities and Power in the US." Goldstone, on completion of mergers, will have the advantage of being able to operate from multi-locations namely California, Arizona, Virginia, Atlanta and Vermont giving it a wider reach and interface with the clients. Goldstone expects its revenues to increase by 100 per cent in the first year of operation after the acquisition.

Based on the current market price of Goldstone, the value of the merger of two companies is estimated at around Rs 18 crore to Rs 20 crore and will be funded through stock swap. The merger is expected to be complete during March 2000, subject to government, shareholders and respective US companies' shareholders approval. Following the merger Primesoft and Fortech will work as independent business divisions of Goldstone in USA and the current Brand Equity of these companies will be maintained.