**OT** Technology Trends
Leading Edge plans US acquisition
Leading Edge Systems (LES) is to announce the acquisition of a US based software company. The potential acquisition has a turnover of $ 8-10 million.
LES is engaged in software development and focuses on the telecom, mail order, retail, finance, insurance and entertainment sectors. The company took over the Suresh Rajpal promoted ECapital two months back.
The combined equity has a total of around 450 employees and Chase Manhattan holds a stake of 31% in the company?s Rs 150 million equity. LES is targeting a turnover of around $ 21.5 million for FY 2000 and $ 40 million for FY 2001.
The acquisition would definitely help LES achieve its target and further boost its market capitalisation (which stands at Rs 30 million). The acquisition is likely to be in the domain areas, which LES caters to.
What is however not known whether the company would give out stock to the shareholders of the acquired company or whether the payment would partly in cash.
However, the company would have to think of a listing on the Nasdaq if it were to offer stocks to its US employees. On its part the management has said that it could think of a listing on the Nasdaq as and when it needs the money though they don?t need it right now.
Market View:
Analysts have rated the stocks a buy, primarily for its management quality, since Suresh Rajpal is rated as a top?notch manager within the infotech industry. Secondly, the domain sectors that the company is targeting are high growth areas and the company seems to have the wherewithal in terms of the resources, to participate in its targeted sectors? growth.
February 12, 2000 (eqMaster)
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NIIT to complete US buyouts by Sept
(Monday, February 14, 2000)
Bipin Chandran in New Delhi (Business Standard)
The Delhi-based Rs 880 crore IT training and software development corporation, NIIT, said it would complete its acquisition of some US software companies by September this year. It is also learnt that the company has short-listed about six companies.
"We are planing to complete the acquisition of the US companies by September this year and are in the process of evaluating six of the short-listed US infotech companies," Rajendra S Pawar, Chairman of NIIT informed. He however, did not reveal the names of the US companies it has short listed.
"But the buyout process may not necessarily be an outright buy," Pawar observed.
NIIT has been postponing its acquisition deadline ever since it was announced last year. As per the earlier plans of the company, it has announced its intentions to buy out companies specialised in client-server technology.
Meanwhile, Pawar also hinted that NIIT is currently seriously considering some other companies in the vertical segments, too.
"We are still analysing various options regarding acquisition," he said, adding that the company might choose both options -- strategic alliance and buyout -- to increase its presence in the US market.
Global consultants Goldman Sachs has been appointed the advisors for the entire process. According to Pawar, Goldman Sachs has in turn hired US-based IT research agency Gartner group to track and trace local companies with good customer base.
However, regarding how the IT major will raise the funds for acquisition, Pawar was tight-lipped.
NIIT has earlier launched India's first Internet entrepreneurship project e-mahamillionaire.com, aimed to help about 1,000 Internet start-ups by the year end.
As per this initiative of the company, it company would prepare ambitious Indians to set up Internet businesses of their own. This would be formally launched in Delhi and would be extended to other part of the country in a phased manner.
Besides, the company is also in the process of rapidly transforming itself into an e-business solutions company.
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Salora mulls Nasdaq listing for jadoonet.com
PRESS TRUST OF INDIA
NEW DELHI, FEBRUARY 13: Television manufacturer Salora International will soon approach Nasdaq with its infotech venture company jadoonet.com for listing to fund its massive expansion plans.
"We need to mobilise funds for jadoonet since the expansion plans cannot be funded through internal accruals of Salora. We have two options - either getting listed on the American stock exchanges or roping in a venture capitalist," said joint managing director Gopal Jiwarajka.
He said the Nasdaq route might be preferred since this would mean cheaper funds, but a final decision was yet to be taken.
Salora is talking to several internet service providers (ISPs) including MTNL and VSNL for forming a strategic alliance to offer a package including its set-top boxes and cheaper internet access, he said.
"We are talking to several leading ISPs like VSNL and MTNL to work out an arrangement which would amount to revenue-sharing between set-top box provider jadoonet.com and service providers to provide much cheaper net access," Jiwarajka said, adding that an alliance would be formed within the next one month.
"Once this alliance is finalised, jadoonet will need a large quantum of funds for which we will either approach Nasdaq or take to venture capital," he said.
Jiwarajka, however, declined to give details of the revenue-sharing arrangement Salora has proposed to the ISPs but said the expansion plan for jadoonet has already been approved by the board of Salora International.
"In the internet business, there is always an initial period of loss and we are still figuring out how much loss to take before arriving at a definite gestation period for the jadoonet venture," he said.
He said the Salora team has worked on the proposed revenue-sharing formula for over one-and-a-half years now, and this would mean unlimited net access at much cheaper rates than what the isps in India offer today.
Jadoonet.com is a Mumbai-based 50:50 joint venture between colour television manufacturer Salora International and Infotech company Infoquest E-commerce; providing internet access, access devices, net content and e-commerce services.
The venture is at present importing the set-top boxes from Britain but Salora plans to begin manufacturing these at its noida facility from April this year
-FinancialExpress,India |
