The Hindu : Business : SoftPro acquires South African firm

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Tuesday, Jun 16, 2009
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SoftPro acquires South African firm

HYDERABAD: SoftPro Systems, a Hyderabad-based business solutions provider, has announced the acquisition of Cura Risk Management Software of South Africa.

The all cash deal, made for a structured consideration of $19 million, is aimed at making SoftPro as global leader in the governance, risk and compliance (GRC) space. SoftPro, with a market cap of Rs. 140 crore, expects the deal to ensure six-fold growth in its revenues to over Rs. 60 crore by the end of the current financial year.

SoftPro Chairman and Managing Director G. Bala Reddy and Vice Chairman K. Vijay Rao, who announced the acquisition at a press conference here on Monday, said the company would pay $16 million upfront while the balance payment would be performance based. The GRC segment was still in its infancy, but growing exponentially.

The recent global depression and revelations of corporate ‘missteps’ heightened the need for oversight of GRC function. The segment was slated to grow from $2.6 billion in current year to $24 billion in the next five years while the industry was experiencing a growth rate of 24 per cent annually.

Replying to queries, they said the company was targeting to achieve $200 million revenues in the next five years and SoftPro would complement Cura’s efforts and aggressively pursue the Indian market place.

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