Infotech Enterprises, through its US arm, will buy the US-based Softential, Inc., which provides service management and service assurance solutions for telecom firms and cable operators.

The deal size is pegged in the range of ₹150-180 crore.

The engineering services company, however, has not confirmed the size of the deal, but only said that the US firm with 140 employees had a turnover of ₹100 crore last year. “These deals are generally valued at 1.5 to 1.8 times of the turnover of the target firms. So, we can assume that the deal value would be in the range of ₹150-180 crore,” an industry observer said, commenting on the deal.

“We have just signed the deal and it will take a year to integrate it,” Krishna Bodanapu, President and Chief Operating Officer, Infotech Enterprises, told Business Line .

Infotech made a net profit of ₹69 crore on a turnover of ₹578 crore in the third quarter ended December 31, 2013. The company expects Softential to contribute to its top line in the next financial year.

“The acquisition strengthens our telecommunications business unit by adding 140 skilled employees. You need someone to run network efficiently and Softential is very good at that,” Krishna said.

Headquartered in Herndon, Virginia, Softential designs, implements and manages systems and applications, allowing customers to monitor and control the performance of their communication networks and business services in real time.

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