India's Polaris Software Lab has agreed to buy banking software firm Laser Soft Infosystems in an all cash deal worth around Rs52 crores ($11 million).
Polaris will pay Rs35 crores on closing, with the rest due in two years contingent on performance. The acquisition will be funded entirely through internal accruals and will be EPS accretive, says the buyer.
Established in 1986, with around 600 staff at centres in Chennai, Bangalore, Hyderabad and Mangalore, India's Laser Soft specialises in providing IT to financial services companies in emerging markets.
The vendor has over 50 customers - including Corporation Bank, State Bank of India, ICICI and Mashreq - for its various systems, which cover core banking, trade finance, treasury, cash management, mutual funds and loans technology.
Arun Jain, CEO, Polaris, says: "Together we will bring a robust and complementary solution-set that is uniquely suitable for emerging markets and will support our market proliferation plan."