Megasoft to buy US telecom software co
Software services company Megasoft Ltd is close to acquiring a telecom software company in the US with revenues of $20 million, a top official said on Wednesday.
"We have shortlisted two acquisitions in the US. One of these will be closed out in the next 60-90 days," Managing Director and Chief Executive Officer G V Kumar said.
Both the companies are in the telecommunications sector, he said.
Early last month Megasoft announced the acquisition of Visualsoft Technologies for 1.72 billion rupees.
"We are leveraging the assets of Visualsoft Technologies Ltd to buy into strong telecoms companies," he said.
The Visualsoft acquisition will also enable the company to bid for larger outsourcing contracts.
"With our current size we can bid for deals ranging between $5-10 million. But with this acquisition we can go for larger deal sizes," Kumar said.
Post-acquisition, Megasoft’s capital would expand to 450 million rupees from the current 316.8 million rupees.
Megasoft derives 46 per cent of its revenues from the telecoms sector. "Visualsoft’s acquisition will strengthen our presence in this space," he said.
For the year to December 2007, the company expects revenues to touch 4 billion rupees with a net profit of 650-700 million rupees. Kumar said he expected to close the current year with revenues of 1.7 billion rupees.
In 2005, Megasoft reported a net profit of 201.1 million rupees on revenue of 1.15 billion rupees. For the quarter to September 2006, its net profit rose 57 per cent to 96.2 million rupees, while revenues rose 44 per cent to 429.2 million rupees.
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