Subex to go for preferential offer to raise Rs 22 crore

Cyber News Service

BANGALORE: Bangalore-based Subex Systems Ltd is going for a preferential offer in January 2000 to raise around Rs 22 crore. This will go towards acquiring a company in the United States in its area of focus--the telecom software sector. In all likelihood, Morgan Stanley and Birla Sunlife will hold a substantial part of the preferential shares. Without giving the number, Subhash Menon, Managing Director, Subex Systems Ltd, said, "The equity base of the company will go up by 7 to 8 per cent after the preferential allotment."

Subex is targeting a telecom software company with a customer base of around 20 in the US telecom sector. The company could have a revenue of $5 million and a manpower strength of about 40.This would provide them with access to these telecom companies for Ranger and its other software services business. Subex has already shortlisted three companies and the deal is expected to be closed in January. Commenting on the acquisition, Mr Menon said, "We will benefit substantially from the expertise as well as customers of the company to be acquired in the niche areas of telecom software."

Subex Systems Ltd, belonging to the Subex Group, focuses on development and marketing of software products and services for telecom applications. Subex operates through its Bangalore office in the country and in Atlanta, US. The products and services of Subex are marketed globally, with a particular focus on the US. For the current fiscal year, Subex is projecting Rs 22 crore turnover and expects to double its manpower to 250 people by the year 2001.