Computer Associates, Pentafour form joint venture company

Computer Associates has announced a joint venture with Chennai-based Pentafour Software and Export Services Ltd. A new company will be formed with the US company taking a majority stake of 51 per cent. It will use the technology of CA's ACCPAC International.

According to CA chairman and chief executive officer Charles B. Wang said that the new joint venture was a part of the $100 million investment plans in India over a period of five years. He added that so far, during the past two years, $30-40 million had been invested under the programme.

Pentafour Software will be establishing the joint venture's infrastructure, contributing local domain knowledge, providing a financial investment and supplying a strong pool of engineering talent actively invoved in development activities. According to Pentafour chairman and managing director V. Chandrasekaran, the new company would develop and distribute the accounting software primarily for the Indian market.

CA will initially invest $1.5 million in the new joint venture, which will be increased in later stages, pointed out Mr Wang. Answering to a question, he said no active process was on currently by CA to acquire an Indian company.