Aptech has identified three US-based software companies for acquisitions, for which it has earmarked US$ 25 m. This was reported by a leading financial daily.
Aptech is India’ second largest information technology (IT) training company with 39% market share. With the largest number of exclusive franchises in the country and aggressive marketing, the Aptech brand along with NIIT, has become synonymous with IT training.
Aptech has outlined plans to enhance its earnings to over Rs 2 bn (and revenues to Rs 10 bn) by end of 2000. The US acquisitions are expected to play an instrumental role in enabling the company to achieve this plan.
The company has adopted the acquisition route as this is easier and quicker than setting up a new facility. Moreover, it will give the company a foothold in US markets. Strategic investments in the US will broaden its global database of clients. It will be easier for the company to offer solutions and expertise in US markets by operating onsite, than by operating in India.
Moreover, with a presence in US markets, it will be easier for Aptech to expand its software training business there.
Analysts expect strong domestic demand for IT professionals to give Aptech’s IT training business a boost. However, some analysts are concerned about the near-constant operating margins. Moreover, private placement of equity has also depressed earnings. Therefore, recommendations have fluctuated from ‘NEUTRAL’ to ‘SELL’.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407