Gemini Communication has acquired a majority stake in Veeras Infotek, a Chennai-based Rs. 50 Crore security and availability solution provider. The deal valued at around Rs.7 crore is funded through internal accruals of GCL.

Veeras Infotek is a strategic addition to GCL’s network security business. The acquisition will extend GCL’s network security and business continuity capabilities and will also increase the company’s client base. Its pioneering work in the areas of virtualisation, collaboration, business service management, information security and business continuity is well recognized and appreciated in corporate India.

“The addition of Veeras Infotek will advance GCL’s vision of becoming a major player in network security space,” said Ram Kumar, Executive Director, GCL.  The market for this space have a very few companies with the required set of skills to address the demand. The potential for a quality player in network security, availability, business continuity, business Intelligence & services management segment with a good reach will generate multi fold opportunities. “Veeras Infotek’s solutions, talent and customers, complement GCL’s business. We are keen on to retain and grow the senior management of Veeras Infotek and will extend our expertise,” added Kumar.

“This is an exciting milestone for our company, and we look forward to scaling our growth as part of GCL. It’s global reach, scale, widely recognized brand and customer relationships makes it the ideal partner for Veeras Infotek. Our combined teams will create exciting growth opportunities for Veeras and our customers. We look forward to the association with the GCL team.” said Sudarsan Ranganathan, CEO, Veeras Infotek.

With the current order book position of more than Rs. 200 crore and Veeras’ acquisition, the company’s profits are likely to grow by over 50 percent in FY 2009 over FY 2008.  By revenues from its multiple core businesses, as well as from this acquisition, showing excellent visibility, the company is likely to achieve earnings of Rs 24-27 per share for the current year.