Vishal Information Tech to buy 3 European cos in 3 months

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Vishal Information Tech to buy 3 European cos in 3 months

Dilip Parekh, ED of Vishal Information Technologies, said the company was looking to buy out three companies in Europe. “We have identified three companies and have started the legal due diligence, account due diligence and the client due diligence. We are expecting to complete the process in 90 days."

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Vishal Info See previous management interviews See what other Experts & Brokerages are saying about Vishal Info Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Dilip Parekh, ED of Vishal Information Technologies , in a interview with CNBC-TV18, said the company was looking to buy out three companies in Europe. "We have identified three companies and have started the legal due diligence, account due diligence and the client due diligence. We are expecting to complete the process in 90 days. By August end or first week of September, we should announce the acquisition," he said.

Here is a verbatim trancript of Dilip Parekh's exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: We believe that you are looking at acquiring some companies in Europe, can you first put a number to how many of these companies are there. Have you identified them? Have you closed the deal - what is the value of the deal and how much do they produce?

A: We have identified three companies and have started the legal due diligence, account due diligence and the client due diligence. We are expecting to complete the process in 90 days. By August end or first week of September, we should announce the acquisition.

Q: Are these USD 10-15 million companies and what do they get to you. Are you buying clients, are you buying front-end?

A: No. I am buying the total company.

Q: What kind of margins will you make in that case?

A: We are expecting about USD 15-20 million businesses from Europe from the three companies.

Q: Have you already identified the companies you are going to buy?

A: Yes. We have already identified and signed the agreement. We have started the due diligence. In 90 days, we have to complete the process and pay the money.

Q: Your total revenues is about Rs 50-60 crore so you would be adding another Rs 75-80 crore, which means by September quarter or the December quarter we are going to see your revenues at Rs 130-140 crore. Is that what you are saying as we stand right now?

A: This year our total revenue will be around Rs 65 crore and by buying these three companies next year we will definitely cross Rs 120 crore.