Four Soft plans acquisition in logistics field
By siliconindia   |   Wednesday, 11 February 2004, 20:30 IST   |    3 Comments
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HYDERABAD: Four Soft, which focuses on software products and consultancy services for supply chain process management, is scouting for an acquisition in the transport and logistics industry. The company plans to spend Rs 6 crore to acquire a company in the US or Asia-Pacific before August. “The acquisition will be for 100% shareholding and management control. Our target is a product company that has a large client base and working on legacy technologies so that we can leverage on the opportunities to help companies migrate to Web technologies. We plan to complete the acquisition by August 2004,” P Srikanth Reddy, Four Soft’s Managing Director, said at a press conference here on Tuesday. However, company officials refused to share further details of the acquisition process. Four Soft is tapping the capital market with an IPO to raise Rs 19.87 crore by issuing 79.5 lakh shares of Rs 5 each at a premium of Rs 20 per share. The funds are planned to set up international marketing network, fund inorganic growth initiatives, and meet product development expenses. Venture capital firms UTI Venture Fund and APIDC Venture Fund have invested Rs 8 crore to hold 13.83% stake in the company. The company’s paid-up equity share capital would increase from the current Rs 11.89 crore to Rs 15.86 crore, while the promoters’ holding in the post-IPO period will come down to 50% from 67%. The public stake after the IPO would be 25.06%.

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