Mastek gains 10%, to acquire 100% in Trans American Information

Moneycontrol BureauShares of Mastek advanced more than 10 percent intraday Tuesday as it is going to acquire 100 percent stake in Trans American Information Systems.The company's board has approved to acquire 100 percent equity shares of Trans American Information Systems for Rs 12.5 crore, subject to compliance with all applicable laws and requisite approvals, if any.For the said acquisition, the company proposes to enter into a share purchase agreement and post the acquisition Trans American Information Systems will become a 100 percent subsidiary of the company. The board has also give approval for a corporate guarantee and mortgage, to secure the loan facility sanctioned by Axis Bank UK to Digility Inc. US, a step-down subsidiary of the company, to secure term loan facility of USD 10 million to be availed by Digility Inc. Digility Inc will use this loan facility to part finance the acquisition of two US based IT consulting and software services companies and shall accordingly, enter into a share purchase agreement in respect of the said acquisitions.Digility Inc will acquire 100 percent in TaisTech LLC, USA and Trans American Information Systems Inc. USA for an aggregate of upto USD 23.75 million.The above acquisitions are expected to be completed in about 2.3 months for the date of execution of the share purchase agreement.At 10:57 hrs Mastek was quoting at Rs 156.35, up Rs 10.30, or 7.05 percent on the BSE.Posted by Rakesh Patil