Hyderabad, March 31, 2004 -- Four Soft Ltd (FSL) is looking out for inorganic growth to scale up its operations in the overseas markets, particularly in the US and Asia Pacific (Apac). The company is engaged in development of enterprise applications and software products.
Palem Srikant, managing director of Four Soft, said that the company has appointed US-based IT consultant Albeon group targeting 2-3 SMEs operating in transportation and logistics with a good client base. This would enable it to scale up its operations in the US and Apac, he said.
Speaking to eFE, Mr Srikant said, “Inorganic growth is one of the focus areas for the company’s overall growth strategy.” As a product company, inorganic growth will enable FSL to grow with a substantial clientele and revenue base.
Though the company has not earmarked any fixed amount for the acquisitions, the total acquisitions cost would be around Rs 40 crore, Mr Srikant said. According to him, the company would fund the acquisitions through the money raised in recent IPO apart from the investments made by UTI Venture Fund and APIDC-VC during last year. “The company has a cash reserve of close to Rs 35 crore,” he added.
The acquisition will be of 100 per cent shareholding and management control, with a consideration to be met with partly cash and partly stocks and balance by generation of future profits by the acquired company. As part of its expansion, FSL has opened a new marketing office in Singapore and proposed to have one in Hong Kong and in other Apac regions to tap the potential for its products, Mr Srikant said.
Meanwhile, the recent IPO of the company had attracted investors like Reliance Capital, UTI VC and UTI Securities, leading corporate bodies, banks, FIs apart from general public. |
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