LG Soft to set up a firm in Chicago

BANGALORE: LG Soft India (LGSI) is setting up an independent company in Chicago, US, in partnership with an undisclosed US-based electronics company.

The company, to be formed in the first quarter of 2000 is being set up with a initial capital of $15 million, which is being raised from venture capital firms. LGSI will hold around 25 to 30 per cent of the equity in the company, with venture capital investors and employees holding around 50 per cent, while the balance will be held by LGSI's partner, the American electronics company.

The new entity will focus on designing and marketing the company's data casting products and its vestigial sideband (VSB)-based hardware solutions such as add-on cards, which will be sold to PC users.

LG's VSB digital transmission technology allows information, data and software to be distributed faster and efficiently via broadcasters. "We have a three-phase road map for the new company. In the current phase, it will be developing VSB technology integrated add-on cards for PC's. Down the line, we plan to have alliances with processor and motherboard makers to integrate the technology in their products,’’ said LGSI president Lalit Ahuja. LGSI India will develop drivers and software applications that will leverage datacasting capabilities, while the US company will provide design services. The company will also target broadcasters in the US such as CNN and others to provide systems software for distributing datacasting stream on VSB signal, he said. Meanwhile, LGSI in collaboration with its US partner is launching its VSB based databroadcasting enabling technologies at the COMDEX event beginning November 15 in Las Vegas, US.