Avani Technology Solutions’s founder Sameer Penakalapati has agreed to acquire Poughkeepsie-based Indotronix International Corporation, a $22 million IT services provider, adding some 250 employees and dozens of Fortune 500 clients to his portfolio, officials said.
The acquisition is a major step in President and CEO Penakalapati’s goal of reaching $100 million in revenue by 2020. Penakalapati predicts combined sales for the two firms of $50 million this year.
The acquisition is slated to bring the two firms’ total employment to over 700 staffers spanning all 50 states and India. The two companies employ some 150 people in New York. The deal also includes the addition of 50 people in Avani’s India office.
The addition of Indotronix will give Penakalapati’s pair of firms government clients and prime contractors who have been customers for 30 years, a huge benefit for a company with eight years of operating history, Penakalapati said.
“I think the biggest advantage that we have with the firm is the history and the clientele they have today,” Penakalapati said. “That’s hard for any business like us; really starting off it’s tough to win (top clients). With this firm we have now a foot in the door with those big class customers.”
“This makes perfect sense to me. It’s a close-knit family. It’s run by one person who we can trust; it’s an easy transaction,” he added.
The software development firm, which has its headquarters at 687 Lee Road, already had planned to add five local staffers by the close of 2016. Next year Avani plans to add another 10 people to Rochester’s workforce and reach $65 million to $70 million in revenues.
“I think (the acquisition) is a great fit,” said Mitch Meller, vice president of IT services for Avani. “I think there’s a lot of synergy between our two companies. We focus a lot on applications; they do that as well as some infrastructure, and I think our philosophies in general are very similar.”