Aftek acquires strategic stake in German company

Aftek Infosys Ltd, a leading player in the enterprise business management space, has acquired a 49 percent stake in the Munich-based Arexera Information Technologies GmbH. The stake has been purchased in an all-cash deal for a consideration of 8.86 million EURO. Aftek retains the right to acquire the entire 100 percent equity in Arexera based on certain predetermined milestones over the next three to four years. 

The investment banker to the transaction was MM Warburg (estd 1798); the independent valuation has been done by PKF

(the eight largest accounting firm in UK). Fortress Financial Services Ltd., have acted as the Indian Advisor to the transaction.

Followed by the signing of the agreement in Munich, Ranjit Dhuru, Chairman and MD, Aftek, said, "This acquisition marks a major milestone in Aftek's scheme of things; it is in line with our objective of emerging in the global knowledge management space. Besides facilitating expansion of market in Europe for our products business, it (the acquisition) would also help in bagging sizeable service contracts from Arexera's big ticket clients." 

Hermann Havermann, MD, Arexera, said, "The association will prove to be mutually beneficial for both the companies; we expect Aftek to help take our products beyond the EU boundaries. This strategic investment is trend-setting in the

Indo-German relationship; I wouldn't know of another example of such an investment made by an Indian software company in Germany so far." 

Founded in 1998, originally a part of a Swiss conglomerate, Arexera has considerable experience in the development of innovative technologies and complex solutions in the fields of Knowledge Management, Data Compression and Content Management. Arexera has a strong product portfolio comprising of six independent products catering to the Knowledge Management space. 

Arexera has an impressive list of clients that include, amongst others, the likes of BMW, Axel Springer Publishing - Germany's largest publishing group, KPMG Beiten Burkhardt GmbH - the global law firm, T-online - Europe's leading Communications company and Datev - Germany's largest association of self-employed tax consultants, auditors and lawyers. 

Aftek recently made a GDR issue to fund its acquisitions and expansion plans. The Company's GDRs are listed on the Luxembourg Stock Exchange. Aftek is a dominant player in the enterprise business management solutions space with focus on infrastructure, information and processes management. The Company's stock is listed on the BSE, NSE, Pune and Ahmedabad stock exchanges. 

DQW News Bureau