SoftPro acquires South African firm Cura for $19 mn

Hyderabad-based Rs 140 crore IT solutions provider, SoftPro Systems Ltd (SSL) is going global with its acquisition of a South African firm. Taking the inorganic route of expansion, SSL has in an all cash deal acquired 100% of Cura Risk Management Software Ltd, South Africa (Cura) for a consideration of USD 19 million. Ernst & young (E&Y) was the exclusive financial advisor to the company for this transaction and Tech IT, USA was advisor for technology.

G Bala Reddy, CMD, SSL in a notification to the Bombay Stock Exchange Ltd (BSE) said the governance, risk, compliance (GRC) processes promote high performance levels of a business by reducing risk and uncertainty while ensuring higher levels of corporate governance.

“In the rapidly changing global economic environment, GRC has become top priority for corporates across the globe. We are bullish on this segment and see great strategic benefits in acquiring a global player with established GRC solution suite, proven technology, marquee client base coupled with a strong management team,” Reddy said.

Growing at 24% annually, the GRC technology industry comprising software, consulting and related services is slated to grow from $2.6 billion in 2009 to over $24 billion in the next five years says a Forrester Research report. SSL also intends to combine the strong delivery capabilities of SoftPro with the India off-shoring advantage to leverage the positioning of Cura to offer a complete suite of Cure to offer a complete suite of solutions in the GRC segment.