The Hindu Business Line : Accel to buy Transmatic

The company would also make an open offer for an additional 20 per cent of the shares of Transmatic Systems. The whole process is to be completed by February next year.

Thiruvananthapuram , Oct. 6

THE Chennai-based information technology company Accel Ltd has announced it is acquiring Transmatic Systems Ltd, which is headquartered in Thiruvananthapuram and listed on the Bombay Stock Exchange.

Announcing this at a press conference in the city today, Mr N.R. Panicker, Chairman and Managing Director, Accel Ltd, said his company was buying approximately 19 per cent of the shares held by the promoters of Transmatic Systems Ltd.

In keeping with SEBI guidelines on the issue, the company would also make an open offer for an additional 20 per cent of the shares of Transmatic Systems Ltd, he added. The whole process is scheduled to be completed by February next year.

Commenting on the rationale behind the acquisition, Mr Panicker said it would give his company access to the product design capabilities and manufacturing facilities of Transmatic. Besides, the acquisition would also make it possible to leverage his company's marketing expertise and Transmatic's product portfolio, he said.

The company, which is known for its expertise in areas such as communications, payment and retailing software, has several products with substantial potential in its kitty, Mr Panicker emphasised.

When asked whether the company would venture into new areas of business once the acquisition was completed, he replied that the "acquisition opened up all sorts of possibilities".

While declining to comment on the value of the deal, Mr Panicker added that the open offer would be made at a price of around Rs 4 per share. Transmatic would continue to exist as a separate entity and some of its existing Directors would continue their association with the company, he added.

Meanwhile, Accel ICICM Systems and Services Ltd — one of the seven companies that constitute the unlisted Accel group — has identified an investor to infuse fresh funds into the company, said Mr Panicker.

An announcement on this could be expected in the near future, he added.

It may be recalled that in July this year, the company had announced its intention to rope in additional funding totalling between $5 million and $10 million.

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