Rating agency Crisil on Tuesday announced that it has signed a memorandum of understanding to acquire 100 per cent equity shares in the Chennai-based Irevna group of companies for $8.6 million and earn out payment based on performance.
Sixty per cent of the amount is payable upfront and the balance at the end of 12 months. Annualised profit of Irevna group is at around $1.5 million.
The acquisition gives both companies significant synergies in developing global business said, Ravimohan, managing director and chief executive officer Crisil Ltd.
Post acquisition there will be no change in Irevna's management or in its delivery model. Also all the employees who are part of Irevna business will continue to be part of the business, including the senior management team, he added.
Selvan Swamy, chief executive officer, Irevan, said the company will leverage Crisil brand equity and financial strength to generate further high growth.
Rating agency posted a net profit of Rs 56.95 crore (Rs 569.5 million) in the quarter ended September 30, 2004 against Rs 45.55 crore (Rs 455.5 million) in the corresponding quarter last fiscal. Its total income increased to Rs 229.79 crore (Rs 2.3 billion) against Rs 182.12 crore (Rs 1.82 billion). Crisil's net profit in the first half of the current fiscal rose to Rs 95.94 crore (Rs 959 million) from Rs 82.1 crore (Rs 821 million) in the year-ago period.