Ramco to buy 18.9% stake in cloud startup SmartMegh

Chennai-based software solutions provider Ramco Systems Ltd has agreed to acquire an 18.93 per cent stake in cloud-based enterprise applications provider Smartmegh Solutions Pvt Ltd for around Rs 1.5 crore (around $222,000) in cash.

Ramco will purchase 2,335 shares of Smartmegh for Rs 6,424 apiece, it said in a stock market disclosure. The transaction is expected to be completed by February 15.

SmartMegh had earlier tied up with Ramco to implement and maintain its solutions globally. The investment will help expand the scope and coverage of these service offerings, Ramco said.

SmartMegh, also based in Chennai, was incorporated in August 2012. It posted revenue of Rs 3.72 crore in the financial year ended on March 2015, up from Rs 1.16 crore the previous year.

Ramco Systems, part of the $1 billion Ramco Group, focuses on consulting, products and managed services businesses. It started as an R&D division of Ramco Industries Ltd in 1992 and became an independent company in 1999.

The firm has 20 offices in India, Asia Pacific countries, the US, Canada, Europe, the Middle East and Africa. Last year, it raised Rs 123 crore through a rights issue. It also raised Rs 325 crore ($52 million) through a qualified institutional placement to expand outside India in May last year.