Events
Gemini Communication Ltd acquires majority stake in Chennai based Veeras Infotek Private Limited
Consolidates position as one among the largest solution provider in the Network Security and Availability space
In brief
- GCL to become one of the Top 3 players in the network security domain
- Converges for consolidation of skills, resources and customer base
- GCL acquires 51% stake; funds acquisition through internal accruals
Chennai, June 16, 2008: Gemini Communication Ltd. (GCL), one of India’s most innovative IT & Networking companies has acquired a majority stake in privately held Veeras Infotek, a Chennai based Rs.50 Crore security and availability solution provider. The deal valued at around Rs.7 crores is funded through internal accruals of GCL.
Veeras Infotek is a strategic addition to GCL’s network security business. The acquisition will extend GCL’s network security and Business Continuity capabilities and increase the company’s client base. Veeras Infotek’s pioneering work in the areas of Virtualisation, Collaboration, Business Service Management, Information Security and Business Continuity is well recognized and appreciated in Corporate India.
“The addition of Veeras Infotek will advance GCL’s vision of becoming a major player in network security space” said Ram Kumar, Executive Director, GCL. The market for this space has very few companies with the required skill set to address the demand. The potential for a quality player in Network Security, Availability, Business Continuity, Business Intelligence & Services Management segment with a good reach will generate multi fold opportunities. “Veeras Infotek’s solutions, talent and customers, complement GCL’s business. We are keen on retaining & growing the senior management of Veeras Infotek and will extend our expertise.”
“This is an exciting milestone for our company, and we look forward to scaling our growth as part of GCL,” said Sudarsan Ranganathan, CEO, Veeras Infotek Private Limited. “GCL’s global reach, scale, widely recognized brand and customer relationships make it the ideal partner for Veeras Infotek. Our combined teams will create exciting growth opportunities for Veeras Infotek and our customers. We look forward to the association with the GCL team.”
Guidance:
With the current order book position of more than Rs.250 Crs and Veeras’s acquisition the company’s profits are likely to grow by over 50% in FY 2009 over FY 2008.With revenues from its multiple core businesses, as well as from this acquisition, showing excellent visibility, the company is likely to achieve earnings of Rs 24-27 per share for the current year.
About Gemini Communication Ltd.
Gemini Communication Ltd., over the last 14 years has built up a reputation of being one of the most innovative technology focussed companies in India. The Company is the largest service provider in India in the wireless networking space and in offering WIMAX solutions to telecom companies. In addition, the Company leads in providing RFID solutions which find application across various manufacturing and service industries, more particularly, for logistics companies which need to keep track of their complex supply chains across the country. As on date, Gemini’s workforce comprises close to 1000 personnel with service offices in close to 100 locations in India.
About Veeras Infotek Private Limited.
Veeras Infotek is a 15 year old company focusing on Business Applications, Infrastructure Integration and Information Integrity solutions. It has a workforce of 125 people across its offices in Chennai, Bangalore, Hyderabad and Coimbatore. It also has TWO consumer focused IT convergence stores under the brand IT@HOME in Chennai.
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