The Hindu Business Line : Infomedia to buy publishing services co

Infomedia India Ltd today said that it would be acquiring International Typesetting and Composition, a Noida-based publishing services company with front-end in the US, for $12 million.

While required funds would be met mostly from internal accruals, Infomedia is not averse to short-term borrowings, said Mr Prakash Iyer, Managing Director.

Infomedia will take 83 per cent stake in the company and buy out the rest by 2007.

Growth area

"We have identified publishing services and e-publishing as a growth area and feel that Infomedia is ideally placed to exploit opportunities in this high-growth segment. International Typesetting and Composition complements our earlier acquisitions perfectly."

The acquired company's existing management would remain in place. Its clients include McGraw Hill, Thomson Learning, and Taylor & Francis.

It now has front-ends in the UK and US, the main two geographies for the English language.

Higher cost

Though it has revenues of only around $4 million, the higher acquisition cost is partly attributed to the quality of clientele and the stickiness of those business relationships.

The latest deal follows Infomedia's December 2005 takeover of Keyword Group of the UK and the Bangalore-based Cepha Imaging Systems - also in the publishing services business space - for $7 million.

The Infomedia scrip moved up by Rs 9.45 to close at Rs 209.40 in Monday's trade on BSE.

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