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News >> Technology >>
Megasoft eyes to buy company in U.S.
By agencies
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Monday, 05 December 2005, 20:30 IST
MUMBAI: Megasoft, the product-based technology company, which just last went through an amalgamation with XIUS India Ltd (a company specializing in mobile software), is now scouting for an acquisition in the U.S.
Announcing this, the companys Managing Director and CEO, G V Kumar said, We want to acquire a company in the U.S. The target company will likely be in the telecom software space and be chosen either for the product it might have or the customers that it can bring for Megasoft.
Megasoft, which, according to Kumar, is the only Indian company in the core network infrastructure OSS (operations support systems) space, is betting high on telecom technology exports. Its telecom practice, which accounts for 36 percent of its revenues currently, grew by 170 percent during the last financial year and is gradually expected to be the dominant business of the company, he added.
The company is expecting to double its employees strength by the end of this year as it wins more contracts, its gradual plan being to take to outsourcing. Megasoft has hosted its hub in Teleglobe, Montreal.
This is an OSS core network center and controls call routing and steers roaming traffic for Teleglobe, which associates with almost 150 operators across the globe. Revenues from this operation are shared in the ratio 60:40 respectively between Teleglobe and Megasoft.
After acquiring XIUS, Megasoft also operates a technology platform called XIUS Instaroam, a platform that enables global roaming to mobile customers who do not have roaming agreements in certain geographies. The company sees more opportunity outside India, which is probably why it is seeking a U.S. acquisition.
India is not a very good market for Megasoft since Indian companies are still building their capacities and going in for low-cost voice infrastructure. Moreover, realizations overseas are three to four times than that from domestic business, Kumar added.