Gurgaon-based KLG Systel Ltd, which has in the past specialised in software development, said on Monday it had acquired a 51 per cent majority stake in Atlanis Lab Pvt Ltd to make an ambitious foray into the growing and lucrative segment of engineering services.
“The valuation of the company is Rs 24 crore and our stake comes to about Rs 12.4 crore,” Mukesh Arora, chief operating officer of KLG, told Hindusan Times. “We have been doing plant design and Atlanis specialises in product design. This kind of completes the loop,” he added.
The 300-employee-strong KLG Systel, which had a revenue of Rs 121 crore in the last fiscal year, said the acquired company which currently has about 130 engineers in Chennai, Pune and Bangalore will help tap markets in North America and Europe in addition to India.
“KLG Systel plans to grow the newly acquired subsidiary to an estimated 1000 design and analysis seats by the year 2008. The new subsidiary will focus on automotive, aerospace, industrial machinery, heavy engineering, ship building, power and process verticals where there is a strong demand for product design and product life cycle solutions and services,” KLG said in a statement.
KLG said it was setting up an 1,000 seats at Gurgaon to help scale up its operations.
Atlantis Lab’s current service offerings include product design, design automation, design simulation, tool design and design data migration for the growing automobile, aerospace, industrial machinery and heavy engineering markets.