Network security and management company Blue Coat Systems on Tuesday announced to set up a product development centre in Bangalore by acquiring controlling stake in S7 Software Solutions which provides migration and re-engineering services. As per the agreement, the Nasdaq-listed company will acquire 100 per cent stake in Bangalore-based S7 for a consideration of about $5.25 million.
The company has so far acquired 83 per cent stake in S7 while the remaining stake which is held by an NRI investor will be acquired in the due course after clearance by the RBI, Brian Ball, Senior VP and General Manager, Blue Coat Systems said. Following the acquisition, Blue Coat intends to make S7's development centre in Bangalore as its fourth design and development centre globally.
Founded in December 2003 by seven techies including the current MD Manjunath Gowda, S7 Software Solutions today employs close to 70 people. Blue Coat intends to increase the headcount of the development centre to 100 by the end of the current calendar.