The Hindu : Business : Sonata to take majority stake in German firm

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Thursday, Sep 28, 2006
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Sonata to take majority stake in German firm

Special Correspondent

The deal is worth Rs. 106 crore

BANGALORE: IT consulting and software services firm Sonata Software will acquire a majority stake of 50.1 per cent in German IT firm TUI InfoTec in an all cash deal worth about Rs. 106 crore (18 million Euros).

Sonata has signed an agreement with Europe's top tourism and shipping group TUI AG for acquiring a majority stake in its 100 per cent IT subsidiary TUI InfoTec which earned revenues of 130 million Euros last year and has 432 employees.

Frankfurt Stock Exchange-listed TUI AG will continue to hold the balance 49.9 per cent stake in TUI InfoTec, which provides IT services to TUI and its subsidiaries in Britain, France, Germany, Sweden, Spain and other parts of Europe.

The deal was subject to clearance from the German "Anti-trust'' authorities, which was expected to come in the next three or four weeks, Sonata Software President and Managing Director B. Ramaswamy told reporters here on Wednesday.

Post-deal, TUI InfoTec would remain the preferred supplier to the TUI group, which has revenues of around 20 billion euros, he said.

Mr. Ramaswamy said Europe contributed 55 per cent of revenues for Sonata.

The deal includes TUI InfoTech's subsidiaries, Travel BA.sys and ACCON RVS which provides technology platform and back-office services for travel agencies. Heinz Kreuzer, Group CIO, TUI and Managing Director of TUI InfoTec, said 44 per cent of the company's revenues in 2005 were contributed by software services and 56 per cent by IT Infrastructure Management services.

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