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News >> Technology >>
WebEx to acquire India's CyberBazaar
By siliconindia staff writer
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Wednesday, 17 December 2003, 20:30 IST
BANGALORE: CyberBazaar (India) Pvt Ltd, the country's main voice and video conferencing service provider, said on Wednesday it had signed an agreement to be acquired by U.S.-based WebEx Communications Inc.
The privately-held Bangalore-based company, which has about 120 employees and 500 customers, said WebEx, a leading global player in the Web communications field, would pay around $4.0 million for its non-cash assets.
CyberBazaar currently has cash of about $1.0 million. Company officials told a news conference that CyberBazaar's founders would also get incentives linked to milestones and performance under the acquisition expected to close in the first quarter of 2004.
"The acquisition will enable WebEx to provide multimedia Web communications for India's fast-growing service sector, enhancing communication between businesses in the region and their international customers," the two companies said in a statement.
CyberBazaar had a revenue of around $2.7 million in the four quarters ended September 30, with a pre-tax profit margin of around 30 percent, WebEx said.
Subrah Iyer, Indian-born founder and chief executive of the Nasdaq-listed WebEx told the news conference by video link from California that WebEx was also eyeing the possibility of using India as a technology support base to help its global customers.
WebEx, which is estimating a revenue of about $185-190 million in 2003, controls nearly 65 percent of the global market in conferencing services.