R Systems buying ECnet of Singapore for $2 m

R Systems buying ECnet of Singapore for $2 m

By SiliconIndia   |   Wednesday, 26 November 2003, 08:00 Hrs
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PUNE: The right time to pick up a bargain is when there is a global economic slowdown, which is what R Systems International, an Indian software company, has done, reports an Indian daily.

"We are in the process of acquiring ECnet, a Singapore-based provider of e-supply chain solutions, for under US $2 million," Rekhi Singh, R Systems’ CEO and president, said. "The investors were looking for an exit and we have got a good deal, with good products and customers," he added.

The Singapore-based company has several blue chip clients and is expected to end the year, in December 2003, with a loss of Singapore $1 million on revenues of S$5 million. R Systems, the US $26 million (December 2002) software company, expects it will need to pump in S$2 million and up to 50 additional people in India to turn it around.

The acquisition, R Systems’ second in the past two years, will enable it to enter the potentially huge Chinese market, Singh told Economic Times from the US.

"China is very big in manufacturing and we were always keen on entering it. This gives us an entry into that market as well as the rest of South East Asia , where the world’s manufacturing is moving," he said.

(Source: ET)

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