News & Events

Calsoft completes acquisition of majority stake in Informed Decisions Corp.

Chennai, October 26, 2005 - California Software (Calsoft) today announced that its wholly owned US subsidiary Calsoft Labs, has completed acquiring 51% equity in U.S based Informed Decisions Corp. (IDC), Alameda, California. The acquisition agreement, which is effective 1st October 2005, was formally signed after the completion of procedural, due diligence & legal formalities. It had earlier signed a Letter of Intent (LOI) in July 2005 with IDC.

Incorporated in 1984, IDC focuses on education products for universities and centers of higher learning in North America. The company's flagship product suite, CASHNet, provides cashiering, bill presentment and collection solutions to leading colleges and universities. Today, IDC's solutions enable its customers (more than 65 institutions of higher learning in the US) to manage the payment and collection process from over a million enrolled students. For the year ended 30th June 2005, Informed Decisions Corp. posted revenues of US $ 6.8 Million.

Calsoft's subsidiary - Calsoft Labs, will have 2 nominees on the 3 members Board of IDC. IDC's founder director Mr. Dan G Peterson, continues as its President & CEO and being on the Board. The revenues & profits of IDC will be reported on a consolidated basis with Calsoft Labs and consolidated into Calsoft Group in the ongoing fiscal year with effect from October 1, 2005. The deal envisages an investment of US D 1.7 million spread out over a period of 3 years and involves upfront as well as staged investments.

With this investment, Calsoft will be strengthening its Enterprise Solutions Division and in particular the Education practice. Post acquisition, Calsoft will add strength to the development, deployment and support of IDC's CASHNet suite of products through a dedicated offshore development and support center at Chennai.

Calsoft plans to grow organically as well through a prudent and focused acquisition strategy that brings synergies to its customer solution offerings.

About California Software Labs

California Software Labs (Calsoft Labs) is a custom software solutions provider based in Pleasanton, CA. It is a 100% subsidiary of California Software Co Ltd. (Calsoft), Chennai, India. Calsoft is a public company listed in the major Indian Stock exchanges and CMMi Level 5 certified. Founded in 1992, Calsoft is financially backed by Chemoil Corporation, U.S.A, Itochu Corporation in Japan, and Industrial Development Bank of India (IDBI). For more information, visit www.cswl.com.

For further details,
Mr.Glen Baylor
Vice President (Sales and Marketing),
Ph.1-925-249-3003
Email: gbbaylor@californiasw.com
CA, USA