The Hindu Business Line : PCS shortlists two firms for acquisition

COMPUTER maker PCS Industries Ltd, in which the promoters of Patni Computers hold stake, has zeroed on two privately held software companies in Bangalore for possible buy-out. "Talks are at a very preliminary stage, and we cannot put a timeline to the deal," a top company official, who did not wish to be named, said.

Declining to detail the profile of the target firms, the official said the company had mandated a merchant banker "four-five months" ago and was still on the lookout for "the perfect fit." The target options could be software firms in embedded space or even companies with capabilities in project deliveries, the official added.

According to market sources, the deal could be in the size of Rs 30 crore and could be sealed in two months.

PCS, apart from being a primary personal computer maker, also offers integrated range of services covering various stages of the IT lifecycle — planning, implementing, managing or operating solutions. "The proposed acquisition is likely to boost its secondary service offerings," since the company had recently set up a new manufacturing facility in Goa, an analyst with a domestic brokerage said.

PCS also offers network management services and facility management services. The company also eyes call-centre solutions to trigger its future growth.

The firm plans to tap the large market potential in a major way with its alliance partner Network Programs India.

PCS reported a net profit of Rs 0.345 crore over net sales of Rs 64.92 crore in its December quarter of the current fiscal.

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