Virinchi Tech set to acquire US firm

Secunderabad-based Virinchi Technologies Limited, an e-Business collaboration solutions provider focussing on the B2B space, is looking at acquiring a US-based software company.

The company is in the final stages of closing the deal and is awaiting the board approval. The company will be holding a board meeting on August 27, 2005, for this purpose.

Speaking to Business Standard, Viswanath Kompella, chief executive officer, Virinchi Technologies, said, "We plan to grow organically as well as inorganically and that is why we are looking at this company. If the deal gets through, it will be our first acquisition."

Kompella, however, declined to disclose the details regarding the company that they are looking at acquiring. He added, "We will look at acquiring more companies in future as well."

Approval of the financial accounts for the year ended March 31, 2005, preferential allotment of shares and warrants and recommendation of dividend will also be considered during the board meeting.

Virinchi ended the financial year 2004-05 with a topline growth of around 71 per cent at Rs 18.29 crore as against Rs 10.64 crore in 2003-04.

The net profit after tax increased by approximately 59 per cent to Rs 5.72 crore in 2004-05 as against Rs 3.59 crore in 2003-04.