Bartronics India Ltd. said its wholly-owned subsidiary Bartronics Asia Pte., Ltd. had acquired 51 percent stake in Pleasanton, California-based Systems America Inc. in an all-stock deal. As a result, Bartronics America Inc. ownership is now transferred to Systems America.
Prior to this acquisition, Bartronics America got re-named as mCloud Inc., which reflected the company's interest in mobile and cloud computing.
With this acquisition, Bartronics can effectively leverage Systems America's global presence and expand to newer geographies of Canada and Europe. In addition to the existing verticals, Bartronics will now get a strong foothold in a fast growing Cloud Computing and Mobility Services such as providing services around Salesforce.com, SAP, Workday and other Cloud Application Services market in various industries.
The resultant entity of Systems America is expected to have consolidated revenues of over $40 million and earnings of around $4.5 million for the year ending December 31, 2012.
As part of its growth strategy, Systems America already lined up a series of acquisitions. The two target companies with which negotiations are currently on include a company in Business Intelligence and Application Services Space with revenues in excess of $24 million and adjusted earnings of $3.7 million and another acquisition target company in Mobile Application and Social Analytics services generating revenues in excess of $25 million and earnings in excess of $4.1 million. The company target to close these transactions by 2013 fiscal year with a top line in excess of $100 million.
Systems America Inc. is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide.
At the BSE, Bartronics India shares are currently trading at Rs.26.50, up 0.57 percent from the previous close.
by RTT Staff Writer
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