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Logix to acquire US-based company

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CIOL Bureau
New Update

BANGALORE: Logix Microsystems Ltd. plans to raise funds of $15 million by

expansion of equity and an acquisition of a US-based software company. The Board

of Directors has approved the raising of $15 million by expansion of equity to

fund the acquisition in USA, to fund future growth and to retire existing debt.

Logix will make use of the services of a merchant banker for this purpose, which

will also work out the premium as per SEBI guidelines.

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Logix with a current equity capital of Rs 5.18 crore claims that, a few

Mutual Funds and FIIs had shown interest in the offering of equity from Logix

and that it was keen on closing the placement before the end of March 2000.

Logix managing director Sanjay Soni said, "Logix is growing rapidly and in

order to fund our growth, it has become imperative that we raise funds by

expansion of equity. Logix has a definite roadmap for growth and hopes to

achieve a post acquisition revenue of US $17 million. Logix is also looking at a

revenue target of Rs 12 crore in 2000-2001." He also added, "We have

opened a development centre at STPI today and to be competitive in the industry

we are studying emerging technologies and evaluating new applications."

Logix is actively looking at acquiring a mid-sized US-based company of $8-12

million and is confident of arriving at a decision in the next 2 months. The

company claims that this acquisition would give Logix to jumpstart US

operations, provide a captive market for its Customer Relationship Management

(CRM) solutions and to have an immediate customer base of Fortune 500 companies

without the gestation period normally required for new entrants into the US

market. Post acquisition, Logix will comprise of three divisions - Business

Solutions Group, E-commerce and Web Solutions Group and Internet-based Education

Group.

The Business Solutions Group would operate internationally and provide

turnkey solutions in CRM and ERP. This group iwould concentrate on consulting

with a high value added component. The E-commerce and Web Solutions Group would

provide web enabling of applications and enable organizations to carry out

business on the Internet. The Internet-based Education Group would provide live

interactive online classrooms, which would create a new medium for distance

learning.

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