Datamatics to acquire 3 US cos

MUMBAI, August 24: The Datamatics group has identified three US

companies for acquisition during the current financial year, which is a

step towards becoming a global player. The acquisitions are expected to

cost between Rs 50 crore to Rs 100 crore.

Datamatics, that owns one of the largest privately held software

companies after Tata Consultancy Services, has subsidiaries in the US,

Japan and Germany. One of the companies short-listed by Datamatics

specializes in imaging software, the other in publishing, and the third is

a general software development firm. The acquisitions are likely to be

completed before the company goes public by the end of next year. The firm

has already made a commitment to list on a stock exchange but is yet to

decide on whether to opt for an overseas or domestic listing. It will go

for a valuation after its results for the year ending March 2000 are

announced. The firm has been pushing for a relaxation in IPO limit for

infotech companies and the recent Securities and Exchange Board of India

decision permitting a minimum public offering of 10 per cent may tilt the

scales in favour of a domestic listing. The company is also planning for

an Employee Stock Options scheme by June next year.