DSQ to buy US firm for $ 30 mn

DSQ to buy US firm for $ 30 mn
ENS ECONOMIC BUREAU

JULY 10: The board of directors of Chennai-based DSQ Software Ltd today approved the acquisition of San Vision Technology Inc (SVT), New York, ranked among the 200 fastest growing companies in the US. The acquisition would be in an all-stock transaction valued at $ 30 million (around Rs 135 crore).

A company release quoted DSQ president and CEO Pawan Kumar as saying the acquisition would move DSQ in a new orbit of IT services for financial sector, as more than 50 per cent of SVT's revenue came from the banking and insurance sector. The transaction has to be approved by DSQ's shareholders.

As part of the deal, SVT's on-site E-commerce development centre in New York for AIG, one of SVT's leading clients, will integrate with DSQ off-site centre at New Jersey.

The DSQ board felt the acquisition would provide the company an opportunity to augment and build its frontline operations in the US, it said. SVT, with a 1999 revenue of $ 15 million and an expected revenue of $ 25 million for fiscal 2000, had 160 consultants and a client base that included AIG, JP Morgan, Merrill Lynch, Deutsche Bank and AT&T, it said.

SVT's senior management would continue efforts to seek long-term contracts for the company and would be given stock option by DSQ, the release said.