Bartronics Asia Pte Ltd, a wholly owned subsidiary of Hyderabad-based bar code solutions provider Bartronics India Ltd, has acquired majority stake in US-based enterprise cloud solutions company Systems America Inc (SYAI) for an undisclosed amount. SYAI is currently listed in the OTC equities category in the US.
"In consideration of swap of shareholding, SYAI now owns Bartronics America, which was renamed to mCloud Inc prior to the deal," it said in a disclosure. Bartronics said that the name change reflects its diversification into mobile and cloud computing businesses.
This means Bartronics arm acquired the stake through a reverse merger deal. Although the transaction details were not disclosed, in October SYAI said it has received a letter from financial institution Wells Fargo for $7.5 million asset-based credit facility that would be used to acquire an undisclosed company. Upon completion of the proposed acquisition and based on negotiated credit facility terms, SYAI was expected to have consolidated pro forma revenues of $30 million and earnings of over $4.4 million for the fiscal year ending December 31, 2012.
This potential target is a privately held provider of onsite consulting solutions, offsite delivery, outsourcing focused on enterprise software, business intelligence and automation solutions from sales and customer service through supply management and logistics to a wide range of clients, it said.
Headquartered in California, Systems America is a provider of cloud solutions and IT solutions to commercial and government clients worldwide. Led by CEO Adesh Tyagi, SYAI delivers solutions for all segments of custom application development and IT services. It specialises in the areas of cloud computing, ERP and business intelligence/data warehousing for vertical segments including IT, finance and accounting, human resources, engineering, pharmaceutical and health care.
SYAI opened a new office and Cloud Design & Development Center in Gurgaon in India in August this year and said it is on track to raise its headcount from 20 employees on the ground in the country to nearly 300 people by August 2013.