Bangalore, Jan 25: Telecom software company Subex Systems has announced theacquisition of the US-based IVth Generation Inc that provides telecomturnkey projects, development & services. The deal was finalised on January12 for a consideration of around Rs 30 crore. Announcing the development tothe media here on Tuesday, Subex Systems managing director Subash Menon saidpost-acquisition the name IVth Generation would be changed to SubexTechnologies Inc which would be a 100 per cent subsidiary of Subex Systemsin US. Later, the company would also eye a Nasdaq listing.He said the acquisition would bring in a number of high-profile US telecomclients which have been built up by IVth Generation over the past fiveyears. The company that recorded total revenues of $6 million in 1999 hasseveral Fortune 500 companies as its clientele including AT&T, Lucent andITDS (a building service company). Headquartered in New Jersey, IVthGeneration currently has a strength of over 50 IT professionals.
He said the company would leverage on the takeover and would enhance itsbusiness substantially as it would provide greater access to leading telecomcompanies. The organic growth was also expected to maximise the company'sshareholder value, he said.
Menon said 95 per cent of the funds pumped in for the takeover were moppedup through preferential offers involving Morgan Stanley, Prudential ICICI,GIC Mutual Funds and SBI Mutual Funds and the rest was through internalaccruals. However, the proceeds from its recent IPO would go for company'svarious other expansion plans in India and overseas. Subex Systems hasposted total revenues of Rs 17.15 crore with a PAT of Rs 2.86 crore duringthe nine month period ending December 31, '99 against Rs 11.83 crore and Rs1.02 crore in the corresponding period previous year.
During fiscal '99-'00, the company is targeting a total turnover of Rs 22crore.
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