Infotech Enterprises Ltd, Indian software firm has taken over US-based Company Wellsco Inc., the company said on Tuesday. Wellsco is into the business of network engineering and management and the deal has been done since Infotech wants to spread itself in the telecommunications sector.

While it was disclosed as to how much money is involved in the deal, it is going to be an all-cash deal and is said to be funded by Infotech's own funds.

Post the announcement, shares of the company gained on the stock market. In the morning, shares of Infotech were trading 2.6 per cent higher and were at rupee 165.50 on the BSE.

Infotech post this deal will be able to have access to larger telecom clients like AT&T, Verizon and Windstream Communications, said Chairman of Infotech, BVR Mohan Reddy. He was talking to Dow Jones Newswires.

The Hyderabad-based company has been trying to expand itself for a long time now. In January this year, it bought Illinois-based design engineering services company Daxcon Engineering Inc. in an all-cash deal. This deal was done since it wanted to have strong access in the heavy equipment engineering and commercial vehicle sectors.