The Hindu Business Line : Lanco to acquire LGSI, ropes in Arjun Valluri

LANCO Global Systems Ltd (LGSL), part of the Hyderabad-based Lanco group, has decided to acquire and merge with itself the US-based $6-million Lanco Global Systems Inc (LGSI).

It has roped in Mr Arjun Valluri as Director and CEO of LGSL. Mr Valluri recently acquired substantial shareholding in LGSI. He had earlier served as Chairman, President, and CEO of Intelligroup Inc.

The Lanco group Chairman, Mr L. Madhusudhan Rao, told newspersons on Monday that the merger process would be completed in the next 9-12 months. Towards this, the company would soon appoint merchant bankers for arriving at valuations and swap ratios.

According to Mr Valluri, the US company recently bagged three Fortune 50 customers, including GE. He said that LGSL has set a target of $50 million in revenue in the next one year and sequential growth at the rate of 40-50 per cent on a year-on-year basis.

"The company should be in a position to clock revenues of over $100 million by the third year-end."

The combined entity would focus on specific industry verticals such as energy, financial services and processes, and discrete manufacturing.

Currently it has around 200 associates and plans to add another 500 over the next one year. "We are currently in negotiations with 4-5 US-based IT companies, which have combined revenues in the range of $22 million, for acquisitions," Mr Valluri said.

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