Gurgaon-based InterGlobe, a $1.5-billion group that operates Indigo Airlines, is in talks for acquiring Mumbai-based Kale Consultants, an information technology services and solutions provider for the travel industry.
The deal is at the due diligence stage, said sources.
The acquisition, if successful, will be for the group’s business process outsourcing (BPO) and IT services unit, InterGlobe Technologies (IGT).
When asked, Vipul Jain, managing director, Kale Consultants, said: “These are all rumours and we deny any such development.” An email sent to InterGlobe for comment went unanswered.
“Other than InterGlobe, an European firm was also interested. But the due diligence process has started for InterGlobe Group. InterGlobe is an aviation, travel and technology firm and this acquisition fits perfectly in their technology strategy. As for Kale, the company’s promoters have been looking for an exit,” said a source close to the development.
Promoters Vipul Jain and Narendra Harihar Kale hold 13.75 per cent and 17.23 per cent stake in the company, respectively. The total promoter holding, including other family members, is 38.6 per cent.
IGT provides services for the travel industry such as integrated application development and maintenance, call centre services, back office services, consulting services and solution frameworks to the travel industry worldwide.
Some of the leading clients for IGT include United Airlines, Virgin Atlantic, Saudia, Travelwire, BTI and Online Travel Corp (UK).
Established in 1986, Kale Consultants provides solutions and services for airline, airports, logistics and the travel industry. Listed on the Bombay Stock Exchange, it reported net profit of Rs 5 crore for the first quarter ended June 30. Revenue at the end of the quarter was Rs 42.2 crore. For 2009-10, the company reported revenue of Rs 165.9 crore, and net profit of Rs 26.3 crore.
The company’s stock on BSE was down 1.2 per cent at Rs 134.7 at the close of the trading day.
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