Singapore firm buys Future Software

Singapore firm buys Future Software

By siliconindia staff writer   |   Friday, 27 August 2004, 07:00 Hrs
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CHENNAI: Singapore based Flextronics has acquired the Chennai-based Future Software, provider of software solutions to telecom firms globally.

The $14.5-billion Singapore headquartered electronics contract manufacturer has bought the entire equity of Future Software, reported a leading business daily.

According to K V Ramani, chairman and managing director, Future Software, the company would become a 100 per cent subsidiary of Flextronics. There would not be any change in the management of Future Software, he said. The deal, whose value was not revealed, was signed today, and the companies would approach the Foreign Investment Promotion Board and Reserve Bank of India for their approvals, he told.

Future Software made a marginal profit on revenue of $25 million for the year ended March 31, 2004, said Ramani, who holds 55 per cent stake in the company. Intel and IL&FS hold 13 per cent each in the company; employees hold a 12 per cent stake and the rest is with minority shareholders.

Employees of Future Software would get cash compensation and large shareholders, including Intel and ILFS, would get Flextronics shares, he said.

Flextronics' acquisition of Future Software comes close on heels of it acquiring a 55 per cent stake in India-based telecom firm Hughes Software Systems (HSS) and a $10 million investment in inSilica, a semiconductor design firm based in Bangalore.

The acquisition would help Flextronics fill the gap in telecom software design and embedded software, said Ash Bhardwaj, President, Original Design Manufacturer Products Group, Flextronics.

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