Mumbai: IT major Gemini Communications is close to sealing an acquisition in the security storage space "very soon", a top company official said on Tuesday.

The Chennai-based company is also eyeing acquisitions in the Radio Frequency Identification (RFID) and WiMax segments, especially in Europe, and hopes to complete at least a couple of acquisitions this fiscal, he said.

"We are in the final stages of negotiations to acquire a domestic company in the security storage segment. We hope to complete the deal in a month or so," Gemini Communications Chairman and Managing Director, Vijay Kumar, said.

The deal size is estimated at around five million dollars.

"The acquisition will help us shore up our marketshare in the security storage space. We will catapult into the top three in the segment," Kumar said.

The existing management of the acquired company would be retained, he said.

Gemini is also eyeing acquisitions in Wi-max and RFID segments, especially in Europe.

"The acquisitions here will be done by our subsidiaries," Kumar said.

Besides, the company also plans to focus strongly on overseas markets, beginning this fiscal and plans to set up three overseas subsidiaries.

The company already has two subsidiaries--Gemini Traze RFID Limited and Pointred Telecom Ltd, which Gemini acquired in 2006.

The total investments in the proposed overseas subsidiaries are pegged at around Euro two to three million.

The acquisitions will be financed through the proceeds of the Euro 15 million FCCB, which the company had raised in July last, Kumar added.

The company clocked a 52 per cent growth in its net profit at Rs 27.47 crore in FY 08 as against Rs 18.08 crore in the year-ago period.

Its net revenue for the period stands at Rs 236.12 crore, up 47 per cent from the Rs 161.02 crore in the previous fiscal.

Source : PTI