Technology product and engineering design services provider Infotech Enterprises is poised to take over a German auto engineering company, reports the Business Standard.

Infotech chairman and managing director BVR Mohan Reddy said, "Due diligence of the target company is on, and we are expecting to close the transaction by this December." The company hopes to intensify its presence in the automobile sector through ownership of the German company, which earned revenues of $40 million last year. Hyderabad-based Infotech recently acquired California-based semiconductor design company Time To Market for an undisclosed sum, and aims to make more acquisitions.

Reddy said, "Indian companies can’t remain as pure outsourcing enterprises any longer. We have to be an end-to-end solutions provider, which is only possible through a local presence." Infotech last year raised $75 million (Rs 345 crore) through private placement of 15 per cent of its equity stake to acquire overseas companies.

On the domestic front, the company plans to invest Rs 160 crore in order to double its office space to 1.2 million sq ft by 2010. It has acquired a property in Noida Special Economic Zone for about Rs 8 crore.

Last week, Infotech signed a new long-term contract with Bombardier Transportation to continue to provide engineering, electronic design, technical publications and IT-related services to Bombardier Transportation divisions worldwide. The two first teamed up in 2003, and now Infotech supports all Bombardier divisions across multiple technologies and projects in a real-time engineering environment. X