Logix to acquire US-based company

By : |February 22, 2000 0

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.

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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