Mr Bala Reddy Turns Around Softpro To Become A Global Leader

PRLog (Press Release) – Jun 15, 2009 – SoftPro Systems Limited having a market cap of Rs.140 Crores has acquired 100% of Cura Risk Management Software Limited, South Africa (Cura) for a structured consideration of ~ USD 19 million in an all-cash deal.
With this acquisition, Softpro has met its first milestone in the turnaround of the fledgling company. By acquiring Cura, Softpro has established a strong foundation on which it plans to build a leadership position in this field and its revenues will grow six fold to over Rs.60 Crs by March 2010. More importantly, this will also establish Softpro as a global leader in the GRC (Governance, Risk and Compliance) space.
The GRC sector is where ERP was 15 years back and is poised to be one of the major growth sectors in the IT space. The recent Global depression and revelations of corporate missteps have heightened the need for oversight of GRC functions. These developments are giving a fillip to this segment like never before. Softpro will have the early mover advantage to leverage these opportunities.  
The GRC technology industry comprising software, consulting and related services is slated to grow from $2.6Bn in 2009 to over $24 bn in the next 5 years according to Forrester Research. Forrester Research, AMR and other firms endorse similar figures. The industry is experiencing growth rate of over 24% annually.
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Cura is a leading provider of integrated software solutions addressing Governance Risk & Compliance (GRC) requirements globally. It has offices in South Africa, USA, UK, Australia and operates through exclusive distributors in 16 countries in Asia and South America. Cura has 75% market share in South Africa and a leadership position in Australia. Cura partners with Big Four consulting firms, insurance companies and specialists in focused areas of Governance, risk and compliance.
Cura has been ranked as a visionary in the Gartner “Magic Quadrant” risk leader by Forrester Research in its GRC “Wave” Report consecutively over the last few years, even without a significant presence in the US. With its recent penetration of the US Market, the rankings should continue to mark it as a leader in GRC
Cura’s products are used by over 150 organisations that include Global 1000 enterprises, government agencies and consulting firms. Some of Cura’s key clients include Vodafone, Johnson & Johnson, GSK, Allianz, Kellogg’s, Xstrata, Virgin Blue, MTN, First Rand, and Dubai Holdings.
SoftPro will complement the Cura efforts and aggressively pursue the Indian marketplace while Cura follows its stated strategies. India has a huge market potential and needs to be harnessed.
Commenting on the acquisition Mr. G Bala Reddy, CMD, SoftPro Systems Limited said “GRC processes promote high performance levels of a business by reducing risk and uncertainty while ensuring higher levels of Corporate Governance. In the rapidly changing global economic environment, GRC has become top priority for corporates across the globe. We are bullish on this segment and see great strategic benefits in acquiring a global player with an established GRC solution suite, proven technology, marquee client base coupled with a strong management team. We also intend to combine the strong delivery capabilities of SoftPro with the India off-shoring advantage to leverage the positioning of Cura to offer a complete suite of solutions in the GRC segment”.  

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Mr. Alon Apteker, Director of Cura stated “We are pleased to partner with SoftPro in achieving the potential of Cura in the GRC segment.  The management team at Cura is geared to consolidate its position and expand across geographies with the strong technical and financial support from SoftPro”.
Avi Eyal, Chief Executive Officer of Cura commented:  “We are excited with the opportunity of partnering with SoftPro.  We established Cura as an emerging firm in an exciting space, and with SoftPro’s expertise, access to markets and industries, and infrastructure in the Indian market, we believe that together we have a great partnership to leverage and succeed.
Ernst & Young was the exclusive financial advisor to the Company for this transaction and Tech IT, USA was Advisor for technology.
About SoftPro Systems Limited
Established in the year 1994, SoftPro Systems Limited is a business solutions provider across multiple industries. Mr. Bala Reddy acquired majority stakes in the company in April, 2008 with a desire to turn it around. SoftPro delivers a wide range of leading – edge technology solutions like application software development and technology integration, ERP, Business Intelligence, enterprise portals and e-Learning solutions. It has a development center in Hyderabad, India and is in process of establishing its second development center in Visakhapatnam, India. The company is an ISO 9001:2000 organization, certified by TUV SUD of USA. SoftPro is listed on the Indian Stock Exchanges - Mumbai Stock Exchange (BSE), National Stock Exchange (NSE).
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