German companies have been relatively slow to warm to the low-cost offshore software development and maintenance model, but there are signs that Indian firms now see potential in the country. Last November, New Delhi-based NIIT Ltd acquired Manheim, Germany-based AD Solutions AG for $3m.
A former hardware specialist, Aftek now builds infrastructure management software, and its Powersafe product can be integrated with Computer Associates’ Unicenter system. In the year to June 30, 2002, the Mumbai-based company made a net profit of IRP 340m ($7m) on revenue of IRP 670m ($14m).
Aftek has retained the right to acquire up to 100% equity in Arexera based on certain milestones over the next three to four years. Aftek said the transaction was done in conjunction with investment bank MM Warburg, and that the value of the takeover was arrived at by UK accountancy firm PKF.
Arexera develops six proprietary software products in the area of knowledge management, and also produces data compression and content management applications. Its clients include T-Online, Axel Springer Publishing and German tax association Datev.
Source: Computerwire
