UPDATE 1-Gemini Comm buys Chennai firm for 70 mln rupees

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MUMBAI, June 16 (Reuters) - Gemini Communication Ltd GEMC.BO said on Monday it has acquired 51 percent stake in Chennai-based Veeras Infotek Pvt Ltd for 70 million rupees.

The acquisition, funded through internal accruals, would start contributing to revenues from the current quarter, Executive Director R.Ramkumar told Reuters.

The acquisition will extend Gemini’s network security capabilities and increase its client base, he added.

“They have a solid skill base, which is a big value addition. Their customer-base will also be added to ours,’ he said over the telephone.

Veeras has about 400 clients across the country while Gemini has more than 1000 clients. “We will be able to extend our services across the globe,” Ramkumar said.

The acquisition will added to the India revenues of Gemini, which now account for about 70 percent of its revenues, he said.

For the current financial year, Gemini has projected net profit to rise more than 50 percent on the back of its 2.5-billion-rupee order book and the acquisition of Veeras.

It has also estimated its earnings per share in the current year between 24 rupees and 27 rupees.

Shares in Gemini were trading up nearly 5 percent at 203.50 rupees in a firm Mumbai market.

Reporting by Janaki Krishnan; Editing by Ramya Venugopal