Mumbai : US-based Transtream Inc is aggressively pursuing four acquisitions- one in India and three in the ASEAN and Greater China regions(Philippines, China and Singapore/Malaysia). The first two of theseacquisitions will be completed in the next 90-120 days, according to Mr PKPadhi, chairman and CEO, Transtream Inc.The company has set aside $4 million cash plus swap of shares and plans toraise $30 million from the Asia Pacific region as well as USA within thenext 12 months. A substantial portion of this will be deployed for mergersand acquisitions.
Mr PK Padhi, in an e-mail interview with eFE said that Transtream's primarystrategy is to achieve growth through mergers and acquisitions. The capitalof $30 million will be raised through private placements and an IPO. He saidthat this investment would be deployed in a such a way that it will createsubstantial value for the shareholder. These acquisitions are currently at anegotiation stage and the details have not been finalised. He did add thattwo of the companies were software services and solutions companies and oneof them is a training/e-learning company. Mr Padhi adds, "If we complete twoof the M&As officially during the third quarter of calender year 2001, thenour turnover would be $12 million, our net profit will be approximately $1million and our growth would be 400 per cent. If only one of them isachieved, our growth will be 200 per cent."
The value contributions after the acquisition will be in building a strongmanagement team to function globally, widen their customer base and willallow the company to enter new markets or new technologies and createdistribution channel or support.
Transtream Inc, US, had acquired the Banglore-based Shri MM Softek Limitedin a share swap deal last year and had formed Transtream India .com Limited.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
