Kshema acquires US co.; plans more acquisition

BANGALOE: Bangalore-based Kshema Technologies has acquired the US-based RJAY Consultants Inc (RCI) in a part cash and part stock deal. The deal is subject to shareholder and regulatory approvals in India and USA. Speaking about the acquisition, Anant R. Koppar, President and CEO, Kshema Technologies, said, "This acquisition will result in extending Kshema's marketing reach in the USA and building a strong and seamless delivery framework for the rapidly growing Internet and Web application space." RCI had revenues of Rs $2.5 million for 1999 and plans to achieve total revenue of $6 million for the current fiscal. Around 25 consultants are working in RCI.

Apart from this, Kshema is in talks with the California based company Net Consulting for another acquisition. "In the next four to six weeks we are finalizing the deal," said Koppar. For this acquisition, Kshema will utilize its cash surplus of Rs 9 crore and unutilized funds from the second round of VC funding which happened in September 1999. Kshema Technologies, which is into e-commerce, CTI, health care and network management, is projecting Rs 23 crore of total revenue for current fiscal and expects to touch Rs 8 crore profits. Compared to last year's turnover of Rs 8 crore with one crore profit, Kshema is projecting 188 per cent growth with 700 percent increase in profit.