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Date: Tue, 10 Aug 2010 05:36:38 
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Omnitech to close $15 mln Dutch co buy in 1-2 months: MD

Related Industry : Computers

MUMBAI, AUG 9 (TickerNews Service): Omnitech InfoSolutions Ltd is likely to 
complete acquisition of a Netherlands company for $15 million in the next 
one-two months, Managing Director Atul Hemani said here Monday.

Omnitech is also seriously considering another buyout in the U.S. for $20 
million, Hemani told TickerNews here.

He said the U.S. acquisition is likely to happen in April but if the 
Netherlands deal fails to go through, it may even happen earlier.

Hemani said the acquisitions will be funded through debt and internal accruals 
and if needed via equity dilution of promoters.

"We have a line of credit from banks and we will leverage that," Hemani said, 
adding equity dilution proposal was still at a nascent stage.

"We will not dilute significant stake. We expect the valuations of the company 
to be more attractive in the future," said Hemani.

That seems to be the philosophy behind Hemani's acquisitions: Penetrate further 
deep into the markets, garner market share and also benefit from the management 
of the acquired entities.

As of Jun-end, the promoters have 54.92% stake in Omnitech.

For Apr-Jun, the provider of remote, infrastructure and performance management 
and disaster recovery services said its net profit was Rs 136.3 million, up 80% 
on-year, while revenue was Rs 745.6 million, up 75%.

Hemani was optimistic of the future business momentum and said the company is 
also looking at buying companies in the domestic market with revenue of Rs 
400-600 million.

Omnitech shares today ended at Rs 247.20 on National Stock Exchange, up 11.38% 
over the previous close


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