Kaashyap & Evolus to pick up stake in each other

BANGALORE: Kaashyap Radiant Systems (KRSL) and Switzerland-based Evolus Global AG have entered into a strategic alliance, that paves way for cross-holding of equity between the two companies. Evolus Global, an e-commerce firm, owns a web-enabled enterprise resource management (ERM) solution.

As per the deal, the Chennai-based leading IT training and software services firm KRSL will market and implement Evolus's ERM worldwide. KRSL Managing Director, A. Venkatramani said that, the cross-holding of equity would be done through the stock swap route. Evolus would pick up a stake of 15-18 per cent in KRSL at a premium of Rs 250 -260 per share through a preferential offer. In turn, KRSL will get close to 30 per cent holding Evolus Global AG, which has

been valued at around $65m by a Swiss-based Law firm.

"Our equity holding in Evolus will be equivalent to the promoters stake, which is around 30 per cent," he said. The balance holding is with private investors. Both the companies will have two directors each in other's board. Evolus president and chief executive officer Peter J. Ordermatt said that, the company had proposed to have its Initial Public Offer (IPO) before June ’01. The funds, to be raised either by tapping ADR or GDR market, would be used for global growth in sales, support and marketing.

"Our aim is to be ranked within the top 15 players globally, among Enterprise Solution Vendors in four years. We also hope to be the No 1 ERP replacement solution in the mid-range market," he said. Evolus's ERM is a Low Total Cost of Ownership Solution (LTCO), which enables midsize enterprises to enhance their business processes and to optimize their client services, which simultaneously results in long lasting profitability (ERP and ERM). The product competes with larger ERP/ERM packages such as SAP R/3, Baan, J D Edwards and PeopleSoft in certain market segments. However, it would compete directly with packages that are aimed at the small and medium business market. These typically comprise of Navison, Abacus, Scala and Sun, which are already established in the global market. With this strategic alliance, Evolus and KRSL will create by the end of the year '05, new jobs in the range of 2000 globally and about 700 within India.