Internet major Yahoo Inc will have a 25-member high-skilled software professional team in Chennai, after it acquired US-based Stata Labs.

Chennai-based iSoftTech, which has a dedicated team of 25 software professionals working for its client Stata Labs, has decided to transfer the entire team to Yahoo Inc following the latter's deal to acquire Stata Labs.

"A decision has been made to transfer the 25-member team to Yahoo," Vijay Babu, president and COO of iSoftTech told said.

iSoftTech, which develops software products for overseas clients (mainly in the US), had recently developed 'Bloomba,' a search engine to assist E-mail users find contacts and attachments, for Stata Labs.

iSoftTech, which reported a turnover of $1.4 million in the year ended March 2004, will be left with 55 software professionals after the transfer of 25 employees to Yahoo Inc.

The 55 employees are working on various projects for iSoftTech's other eight clients, Babu said.

Yahoo acquired San Mateo, Calif.-based Stata Labs, developer of powerful, searchable email application Bloomba, on Friday (October 22).

Analysts say that the move appears to pit Yahoo against Google's Gmail service in the expanding searchable email marketplace.

Yahoo will discontinue Bloomba but it plans to incorporate Bloomba's searchable email technology with its own e-mail system.

US-based venture capitalist Ray Stata, who promoted Stata Labs (before its sale to Yahoo), owns iSoftTech.

The acquisition of Stata Labs will help Yahoo Inc take on rival Microsoft's Outlook Express through 'Bloomba,' analysts said.

This acquisition will provide Yahoo with technological expertise and strategic assets.

Bloomba, the world's first search-based e-mail, was developed by Chennai-based iSoftTech for its US client Stata Labs. Priced at Rs 1,499, the product can be downloaded from the iSoftTech Web site.

Vijay Babu, President and COO, iSoftTech, said earlier that about 15-20 software professionals at iSoftTech had worked for the last two years for developing the product.

With inputs from PTI