Loaded Datacraft plans buys in IT space

With $105 million in cash, Datacraft Asia is looking at acquisitions in India.

The Hong Kong-headquartered $330 million company is targeting companies providing information technology skills, network ready storage, security, data centre and the overall Microsoft space. William Bruce Graham Padfield, chief executive officer, said Datacraft ended the last quarter with $105 million cash.

"We are looking at what we are going to do with our cash balance. We are looking at three options: pay dividend back to our shareholders; buy back some stock from the market; or, target companies for acquisitions. At the moment, we are looking at all of them. India is one of the prime targets for acquisitions."

Datacraft, which primarily operates in Asia-Pacific, has a wholly owned local subsidiary Datacraft India through which it provides application networks solutions for enterprises and telecom service providers.

Besides, it offer highly secure IP virtual private networks, voice over IP solutions, iBoss operational and business systems for billing, fulfillment and assurance management, network ready storage and security.

On the rationale for acquisitions in India, Padfield says: "It is very easy to integrate any acquisition here because of English language and a very well-established rule of law. It means recourse to the law if necessary is available unlike in other countries such as China where laws are complex. Besides, Indians have such great software skills and consultancy expertise. The price is competitive in the world market "" that makes India very, very attractive."

Datacraft has already roped in a global consultant to identify target companies for acquisitions across Asia-Pacific, with a special focus on India.

In India, business has been growing. Revenues from Datacraft's Indian operations, which are clubbed with those from New Zealand, stood at 17 per cent of total revenue in 2003. This has now grown to 23 per cent, making India the largest contributor to the topline. Datacraft is also expanding its business by covering small metros and towns in India.

At present, the company has seven offices in Mumbai, Pune, New Delhi, Kolkata, Bangalore, Hyderabad and Chennai and employs about 310 professionals.