The size of the US companies could range from $10 million to $30 million and the Indian ones could be as large as Rs 100 crore or niche players with revenues of Rs 10 lakh, he added.

The proposed acquisitions are expected to help Mascon obtain expertise in new technologies, get access to high quality clients which would reduce time to market and strengthen the company's presence in certain domains.It has firmed up its plans for a $150 million global depository issue and is in talks with a few merchant bankers.

The company has also been making internal preparations for an overseas listing such as making the accounts GAAP compliant etc.

"By the first quarter of 2001, the account would be GAAP compliant", said Mr Agrawal. Adverse market conditions especially for information technology stocks would have a bearing on the proposed issue but the company wouldtry and get the best possible price, he added.

The proceeds of the overseas issue would be utilised for investment in physical infrastructure to the tune of Rs 40-50 crore, meet working capital needs of about Rs 50 crore and the remaining funds for the proposed acquisitions. The GDR would also create a currency for the acquisitions as companies would be paid for through stock and cash.

The board of the company has also approved a preferential issue of securities to a tune of Rs 100 crore which would be used to meet the payment component through stock while acquiring Indian companies. The company would also use the GDR proceeds to pay for International Software Consulting (ISC) which has been acquired for $25 million through a cash-cum-stock deal.

Mascon to acquire cos in US, India; plans $150 m GDR float A commitment money has already been paid for the acquisition.

Mascon Global follows a unique model of acquisition where a down payment is made to the company being acquired and then over a two-to-three-year period the remaining amount is paid subject to meeting fixed performance criteria. Later, the acquired company is integrated with Mascon. The software outfit had earlier acquired Ponderosa Technologies and Synergy Soft Solutions whose operations have been integrated.

The company has a high exposure to the US market and is in the process of increasing its business in India, South East Asia and Europe. On-shore revenues account for about 80 per cent of the total revenue. The on-shore component is expected to reduce to 66 per cent by the end of 2002. The company's on-site rates are $70-75 and off-shore rates are $25.

The software outfit through constant technology studies identifies emerging technologies and then trains its manpower on such cutting edge applications. This enables the company to command its rates, said Mr Agrawal.