Datamatics in $17.39m Cignex bid

Datamatics intends to acquire a 72% stake in US-based content management firm Cignex for $17.39 million, reports The Times of India.

This acquisition gives Datamatics access to three new markets, namely California, Singapore and some part of Middle East, explains Rahul Kanodia, VPn and CEO, Datamatics Global Services.

Cignex provides content and document management IT solutions based on open source software for businesses. Kanodia says the acquisition is a strategic expansion of Datamatics business as the company has business segments providing similar solutions.

According to The Economic Times, Kanodia says the company is looking to make acquisitions in order to expand its financial and accounting services business in the US, UK and India.

He adds Cignex is looking at generating revenue of between $20 million and $22 million in the ongoing financial year and $30 million in 2012 to 2013.

The Hindu Business Line notes that once the deal goes through, the enterprise content management and document management space would contribute around 45% to Datamatics' revenues from 30% currently.