Omnitech InfoSolutions, India's leading Business Availability and Business Continuity services provider today announced the acquisition of Avensus Netherland BV. The acquisition deal has been pegged at USD 9 Million in an earn-out structure. The upfront payment consideration is of USD 4.8 Million and the remaining amount is a combination of deferred payment and earnout which shall be paid over a period of 3 years. Avensus is an European-based firm offering managed IT services, and security, storage & virtualization solutions to BFSI, Healthcare, and Government sectors.
Avensus with a turnover of USD 13 Million in CY 09 and team strength of 45 professionals specializes in offering Managed Services for IT Infrastructure along with niche services and solutions on areas like High Grade Security, Storage & Virtualization. Avensus has a very strong core management team of 7 people, deeper presence in Netherland with loyal customer base which includes some fortune 1000 corporate organizations across various verticals like Banking, Financial Services & Insurance (BFSI), Healthcare, and Government. Currently Avensus caters to Netherland and Luxembourg markets, through this acquisition, Omnitech plans to further leverage the expertise of Avensus and expand across the entire Europe over the period of next three years.
Omnitech will get an access to over 100 existing customers of Avensus, to explore cross selling of its services like remote infrastructure management, application management, performance management, business continuity services and domain specific services. The synergy generated between both companies will help Omnitech to gain new customers by leveraging its global delivery model to offer competitive services to European customers thereby increasing the overall profitability of current business of Avensus.
Omnitech expects to add nearly USD 3 Million to the top line by the end of current fiscal - FY 11. Omnitech aims to achieve multi-fold growth (around USD 30 - 35 Million) through entire Europe with Avensus as a platform by FY-14 Commenting on the acquisition, Mr. Atul Hemani, Managing Director and CEO, Omnitech InfoSolutions Ltd, said "With the acquisition of Avensus, Omnitech will further strengthen its presence in the European market. It will also provide the right platform for Omnitech to leverage the local strengths combined with Omnitech's Global delivery model in services like Remote Infrastructure Management, Application Management Services, BCP consulting and niche BFSI consulting services.
This platform will also be of great help to launch our innovative services based on Cloud Computing and domain specific services. This will also enable us to add High grade Security services to our portfolio which can be leveraged across our global customer base.
We have indentified excellent synergies between the Avensus & Omnitech which is a key to the success of any acquisition. These synergies are well thought of & a structured deal and positive employee morale of both organizations make us confident to achieve our objectives. This deal will help us generate a transformational impact on our customers, associates and also create more value for our share holders."
Mr. Ed Trautig, CEO of Avensus Nederland BV, reacts enthusiastically on this transaction. "With Avensus joining Omnitech we get an excellent opportunity to spread our customer focus over Benelux and Europe. Based on the qualitatively unique shared values and team-interests of both companies we are looking forward to leveraging the Omnitech global services model. This will enhance the added value we offer to our customers with the purpose to strengthen their effectiveness and efficiency based on local customer knowledge and a local organization using, in addition to the solutions we already provide, the strengths of global Omnitech solutions.
Next to that we encourage the opportunity to use our (High Grade) Security Services as an important part of the global growth strategy of Omnitech.
This merger not only brings great value to our customers but also to our staff because it gives us the opportunity to fulfill our customer oriented ambitions at an extended professional and also international level."
Current team is committed to continue to work post the acquisition and merged entity shall grow its team size to around 150 people in next 3 years. The total staff strength of Omnitech will reach globally to 1100+ employees post acquisition.
The shares of Omnitech Infosolutions are currently trading at Rs 217 up Rs 3.3 or 1.54% over the previous close.
The scrip touched an intra day high of Rs 220 and an intra day low of Rs 214.