The Hindu Business Line : Four Soft acquires Danish firm for $10 m

Logistics and supply chain technology company Four Soft Ltd has announced the acquisition of a Danish company Transaxiom in a cash-cum-stock deal valued at $10 million (about Rs 45 crore).

The merger process of the two companies would begin in January and end by March 2007. The company is likely to announce revision in its guidance factoring the acquisition.

The Managing Director of Four Soft, Mr Palem Srikanth, said the $10-million deal is linked with the payouts happening over the next three years based on performance. A joint team has been identified to work on the integration process.

The acquisition, Mr Srikanth said, adds a number of strategic customers and would help expand global presence in Scandinavia, Australia and Hong Kong, where Transaxiom was operating. In fact, Transaxiom was once owned by Swiss Air, which was witness to a management buyout.

Four Soft has managed to build on a combination of organic and inorganic growth through strategic buyouts. With the addition of new clients and new geographies, the company plans to revise its revenue guidance upwards next quarter and is on course to revenues of $50 million, he explained.

BPO foray

As a part of the company's expansion plans and bid to offer a wider range of services, Four Soft is on course to deciding plans to foray into business process outsourcing for logistics and supply chain companies.

The BPO company would be through a joint venture route, he explained.

The company announced it has secured order from Panasonic. Four Soft shares ended at Rs 71.15 on the BSE against the previous close of Rs 68.15.

More Stories on : Mergers & Acquisitions | Software | Outsourcing

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