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Bangalore-based Polaris Software Lab, which provides banking, financial and insurance services, has mentioned that it has plans for acquiring Laser Soft Infosystems. The deal is worth Rs.52 crore.
"The acquisition will enable us to target Indian banks as well as banks in Africa, Latin America for core banking and other financial technology solutions," Arun Jain, chairman and chief executive of Polaris Software, said.
Rs. 35 crore of the entire deal amount will be paid as cash whereas the remaining will be paid in a span of 2 years, based on the performance.
About 83% of the stakes of the firm is with company managing director Suresh B. Kamath, whereas the rest is held by the employees.
Jain said Polaris will acquire the minority holdings as well.
The Rs.37-crore Laser Soft with around 600 employees will bring to Polaris around 40 banking customers.
According to Polaris chief financial officer R. Srikanth, the current assets of Laser Soft is around Rs.18 crore and the fixed assets at book value is around Rs.8 crore.
"Last year the company on a turnover of Rs.37 crore earned a profit after tax of Rs.4.8 crore. The target for the current year is Rs.41 crore turnover and a profit of Rs.7 crore," said Srikanth.
As per the current plans, Polaris will keep Laser Soft as an independent entity and perhaps a year later merge the latter with itself.
