IT services company Sonata Software has sold its 50.1% stake in its loss making joint venture (JV) TUI InfoTec back to Germany-based tourism and travel major TUI Travel PLC.
The Bangalore-based company said this transaction will fetch it upto Euro 12 million on a deferred basis upon achieving certain milestones. Additionally, Sonata will also have to waive-off about Euro 3.5 million to TUI Travel PLC towards ‘certain obligations’.
A definite agreement to this effect has been signed between both the parties as per which Sonata Software will also continue to be the preferred partner of TUI Travel PLC and manage the offshore delivery centre of TUI InfoTec.
In September 2006, Sonata Software had picked up majority stake in Hanover-based TUI InfoTec for Euro 18 million (about Rs 106 crore as reported at that time). The JV was however turned to be unprofitable for the company.
In fiscal 2011-12, TUI InfoTec contributed Rs 494.80 crore to Sonata's annual revenues of Rs 1568 crore. It however posted a loss of Rs 7.59 crore due to increase in costs.
"We have been working with TUI Travel PLC for the last 8 years and have built very strong relationships with different stakeholders within the group. We believe we can apply the knowledge of the business and technology learnt over this period to enhance the strategic business advantage of TUI Travel PLC as they continue to invest in new technologies," Srikar Reddy, CEO and MD of Sonata Software said in a statement.
TUI InfoTec provides infrastructure management services to its group clients in diverse verticals including airlines, travels, tourism and hospitality.