Aspire Systems, an IT firm that focuses on product development, is coming out of hibernation mode with its first acquisition and a strategy that promises to finally push the company onto a path of higher growth.
According to Chairman and Managing Director Gowri Shankar Subramanian, the Chennai-based company has consolidated the number of promoters from seven to three over the last few years.
“It’s true that we have been conservative in some aspects. We came to a boundary a few years ago, where we had to decide whether we wanted to exit [the company] or continue onward,” Mr. Subramanian, who is also the main promoter, said, in an interaction with The Hindu on Tuesday.
“We chose to see this through. There is no question of exit now. We have nearly tripled our revenue to $30 million in the last three years through more onsite work, and are profitable at an industry standard level,” he added.
As part of this new aggressive strategy, the company, on Tuesday, completed the acquisition of Hyderabad-based Versant Technologies, a software services firm that specializes in the Oracle retail suite of solutions. While Mr. Subramanian declined to disclose the value of the transaction, he pointed out that Versant Technologies had revenue of nearly Rs. 10 crore and close to 70 employees. These employees will now be added to Aspire’s workforce of over 1,000 employees.
According to Mr. Subramanian, the acquisition will strengthen Aspire’s ability to offer deep domain expertise especially in the execution of core enterprise software.
“We want to pursue a good inorganic strategy and for that we plan to go through the debt funding route and not PE. We are in the process of raising a line of about $12 million, both working capital and term loans, which will be used to fund future acquisitions and expansion,” he said.