Midsized IT firm Sonata Software Ltd is expecting approval from the Centre for its much-delayed Special Economic Zone (SEZ) in Hyderabad in the next 4-6 weeks, according to president and managing director of the company B Ramaswamy.
“Allotment of land by the Andhra Pradesh government has been delayed due to various reasons. We have been working on getting approvals for the SEZ which we expect in the next 4-6 weeks,” Ramaswamy said.
Sonata already has a development centre in Hyderabad with seating capacity for 800 people. The company has been planning to invest Rs 100 crore to set up its second development centre on eight acres of SEZ land allotted to the company by the Andhra Pradesh government. The centre, which will service the global clients of the company, will have a capacity for 2,600 software professionals.
As part of diversifying its offerings beyond travel and product engineering services into verticals like banking and financial services, retail and FMCG, Bangalore-based Sonata is looking at acquiring a company in the $20-50 million range, Ramaswamy said.
“This is part of the diversification strategy. In terms of gaining domain expertise in new verticals like banking and financial services, we need diversification. We view the US market as a good location to scout for potential acquisitions which can give us strong domain expertise in new services,” he said.
Even as it targets new verticals, Sonata is looking at potential companies with horizontal expertise in areas like infrastructure management and managed testing services.
The company had cash reserves of Rs 154 crore at the end of the December quarter and expects the strategic acquisitions to help it gain traction in niche financial areas within the broader ambit of investment banking and insurance.
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Sonata wants mature firms in terms of business which can bring in customers, IP, domain and geography in the range of $30-60 million size. The MD added that captives in India could also be considered.
Sonata has offices in the US, Europe, West Asia and the Asia-Pacific region. It has four development centres in Bangalore, one in Hyderabad and two in Hanover, Germany.