Post-merger, VisualSoft eyes $100-million turnover

Banking on the merger of AppLabs Technologies and eSolutions Pvt Ltd with itself, VisualSoft Technologies Ltd expects its turnover to touch the $100-million mark in 2006-07. The company plans to end the current fiscal with a turnover of $70 million.

Addressing the media, Sashi Reddi, CEO of AppLabs, who will now head VisualSoft, said, "This synergy will help us focus on niche areas like software testing and product development besides gathering domain expertise in areas like supply chain management and retail. The combined entity is targeting to end this fiscal with $70 million followed by $100 million in 2006-07."

While AppLabs is expected to contribute $22 million this year, eSolutions is expected to end this year with around $1.2 million. The contribution from VisualSoft, therefore, is expected to be $46.8 million.

Reddi added that the combined entity, with an employee strength of 1,800, will be going on a recruitment drive. The new entity will be serving more than 400 active customers globally. According to Reddi, VisualSoft does not rule out further inorganic growth possibilities in the near future.

The merger is subject to regulatory approvals from the Indian stock exchanges and the Andhra Pradesh and Tamil Nadu High Courts. The company expects the completion of the amalgamation in the next six months. According to Reddi, VisualSoft does not rule out further inorganic growth possibilities in the near future.