California Software to acquire majority stake in Aspire Communications

California Software Company Ltd on May 22, 2007 has announced the signing of a Memorandum of Understanding (MoU) to acquire 51% equity in Aspire Communication Pvt Ltd (Aspire), India and its US Subsidiary AspireSoft Corporation. The MoU will culminate into a final share purchase agreement subject to standard closing conditions, necessary approvals and completion of all formalities including diligence. The entire process is expected to culminate by end July 2007 and is envisaged to be a combination of cash & stock deal.

Mr. S (Sam) Santhosh, Managing Director & CEO, of the Company, said, "This acquisition will help Calsoft augment its Product Engineering Services. With the Hardware Design expertise that Aspire Communications brings we can now provide end-to-end solutions in the Outsourced Product Development (OPD) space."

Aspire was founded in 2001 by Dr. Mahesh Rao when he returned to India after completing a 10-year stint at Intel. The Company has offices in Mysore, Bangalore, and San Jose. Aspire focuses on providing Hardware Design Services to Technology Companies. Aspire is expected to add about $ 3 M in revenue and $ 400,000 in net profit to the Calsoft Group on a consolidated basis in 2007-08.

The stock closed the day at Rs.69, up by Rs.5.85 or 9.26%. The total traded quantity was 10279 compared to 2 week average of 13757. The stock hit an intraday high of Rs.69 and low of Rs.64.50.

Source : Equity Bulls

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