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|June 17, 1997||
Ampersand, Baysoft India merger to take 10 more monthsSoftware firms Ampersand and Baysoft have announced a merger to create a "globally competitive" software company but in India, the legal formalities are expected to take another 10 months.
However, both firms have already merged their day-to-day software operations. Narasimhan Mandyam, managing director, told reporters "This merger will help us to leverage our joint size. We will be able to attract larger clients and bigger projects than we were able to do individually."
With the merger of operations, revenues for 1996-97 have totalled Rs 57 million. Sales for 1997-98 is forecasted at Rs 112 million.
The merged company will have a combined strength of 120 software engineers, 10 per cent of whom will be based in the United States.
Ampersand-Baysoft - as the merged entity is informally being called pending the formal clearance of its name - said the merged company would have two complementary shrink wrapped products for the local market, a financial accounting package called Amon and a payroll package called Baypay.
Amon and Baypay will be sold in the Asian market. Both products have been developed with state-of-art object oriented technology. They offer the latest front-end graphical user interface, according to the companies.
Joseph Vithayathil, director, international sales, said: "Product sales will constitute 10 per cent of total revenue and services the rest. We expect that products will contribute 25 per cent to our revenue in two years time."
He said the company proposed to raise funds from the capital market in the next 18 months to 24 months. "Software is not an asset-based business, consequently it is very difficult to raise debt from the market to fund growth.
- Compiled from the Indian media
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