Soffia Software plans US buys

MUMBAI: Indian infotech firm Soffia Software Ltd. is planning to acquire two

US-based software companies for a total of $6 million to $10 million, its

managing director said.

"We have identified two companies and the due diligence is on," R.

Venkata Subramani told a news conference late on Wednesday. He did not specify a

timeframe for completion of the deals.

The firm, based in the southern Indian city of Chennai, specializes in

developing products for the financial sector and is now making a foray into

products for the telecommunications sector.

On Wednesday, the firm's telecom team launched its first two products - a

mobile computing software called Surveylance for the insurance industry and

WAPDBTool, a software tool for developing WAP applications.

Soffia officials said they expected Surveylance to net revenues of Rs 20

million for the year ended June 2001 and WAPDBTool to earn $1.0 million (Rs

46.83 million).

Both products will initially be targeted at the domestic market, they said.

Subramani said he expected the firm's turnover in the year ending June 2001

to touch Rs 510 million. The company posted sales of Rs 141.17 million for the

year ended June 2000. In the first quarter of this fiscal, its sales were Rs

93.13 million.

Subramani said the firm was setting up new infrastructure for software

development in Chennai at a cost of Rs 250 million, which would be funded out of

internal resources.

Soffia shares were Rs 1.35 up at Rs 195.95 on the Bombay exchange in late

morning deals.

(C) Reuters Limited 2000.