SQL Star plans acquisition of US cos.

BANGALORE: In a major expansion exercise, Hyderabad-based SQL Star International Limited plans to acquire three to four US companies "that match its corporate philosophy" during the current fiscal year. According to a release, a total amount of Rs 30 crore for the financial year 2000-01 has been earmarked for this purpose.

The company has appointed ‘Catalyst’, a US-based consultancy, to identify prospective businesses for acquisition. Apart from narrowing down on businesses/opportunities that will synergise with SQL Star’s requirements, Catalyst will also assist in evaluating, structuring, negotiating and finalizing the deals.

At the recently concluded AGM of SQL Star held in Delhi on March 30, 2000 it was decided that up to Rs 30 crore be set aside for investments by way of inter corporate loans, investments or providing guarantee or security. The acquisitions will preferably be in the West Coast of the US as the company already has an established presence in the East Coast.

SQL Star Managing Director Dr Ashok Agarwal said, "The IT industry operates in a highly competitive environment in which it is essential to ensure a very high growth to be competitive. To achieve this, SQL Star is looking at strategic alliances, joint ventures, acquisitions or mergers. We are looking at opportunities in the US that match our business philosophy and complement our functioning. We have appointed Catalyst to identify such opportunities and evaluate them on the basis of several criteria and also assist in negotiations and closing of the deals."