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|May 20, 1998||
Ampersand Software keen on mergers and acquisitionAmpersand Software Applications Limited will now pursue the mergers and acquisition route aggressively for growth.
The M&A strategy will be similar to the one the Bangalore-based company pursued when it merged Baysoft with it last year, said Surekha Shetty,
"We are looking at companies which have complementary strategies, different markets and products for M&As. The process has already been initiated with four to five firms and we will clinch a deal with a company in the next two months. By the end of this year there will be one more M&A and two more, later next year,'' she said.
Shetty, however, refused to divulge the names as negotiations are still at an advanced stage. The company is holding talks with both Indian and foreign firms for the purpose, basically small ones, she said.
"Through this, we want to have a smaller piece of the larger pie.''
Ampersand is targeting a turnover of Rs 100 million during the current fiscal as against Rs 31 million last year. It has set an ambitious target of becoming a Rs 450 million company by 2000. In 2001, it plans to be listed on the NASDAQ, Shetty said.
The present equity of Ampersand stands at Rs 3.4 million. The company plans to raise around Rs 120 million equity from Indian or US sources.
Though the company has not gone public so far, valuations by merchant bankers have put the figure at Rs 80-150 per share. Ampersand will offer a 20 per cent stake in the company to the prospective partner.
The process is expected to be completed in the next three to four months, Shetty said.
Though headquartered in Bangalore, a major chunk of its business comes from the US markets. Ampersand has already set up offices in the Netherlands and Japan.
"We will look at markets like Australia, Singapore, UK, Germany and so on in the next three years. Venturing into new markets will be the key to our growth,'' Shetty said.
As far as Bangalore is concerned, it will remain the development centre and headquarters of the firm. Besides, it has two marketing offices in Madras and Bombay. Currently, the company has two products - Baypay and Amon.
- Compiled from the Indian media
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